Dentsu predicts 6.1% growth in ad spend for 2022 in Australia

Global ad spend will grow by 9.2% in 2022, overtaking pre-pandemic levels, according to Dentsu’s latest forecasts.

The advertising market will reach US$745 billion (A$1 trillion), exceeding 2019 spend by US$117.2 billion (A$166 billion).

In Australia, ad spend is forecast to grow 6.1% in 2022 after a 17.6% jump in 2021.

In APAC, overall ad spend growth is boosted by key sporting events such as Indian Premier League, FIFA World Cup, Winter Olympics, and country elections in Australia and India.

Digital and television continue to be the two powerhouses driving global and APAC ad spend, yet with opposite dynamics. Following a 24.8% increase in 2021 (vs 29.1% globally), Dentsu forecast digital investment to grow by 9.6% (vs 14.8% globally) in 2022, fuelled by Social and Programmatic in APAC. This will result in the digital share of spend increasing to 61.1% US$150 billion (A$213 billion) of the total ad spend in APAC, over twice as big as the television share of spend (24.5%) in 2022.

Linear TV ad spend increased by 5.1% in 2021, the highest rate since 2013. In 2022, Dentsu forecast linear TV ad spend to grow by 1.4% to reach US$60 billion (A$85 billion) in APAC.

Source: Denstu Global Ad Spend Forecasts (January 2022) [click to enlarge]

Radio too is forecast to grow, yet at a slower pace of 1.5% in APAC (vs 2.0% globally). As with previous predictions, ad spend in newspapers and magazines will continue to decline globally and in APAC.

Dentsu international CEO Media APAC, Prerna Mehrotra said: “Marketers will need to be nimble, leaning on technology and maximizing opportunities in video, social, Connected TV (CTV) and e-commerce. Use of data to drive business outcomes without compromising privacy or security will continue.

“We expect data collaboration to be a big focus in 2022. In light of the ongoing global turbulence and recovery, we will continue to work with brands to accelerate efforts in engaging consumers and driving attentive reach.”

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Emma Shepherd

Emma Shepherd was the acting deputy editor at Mumbrella who has over seven years of print and digital experience in the industry and has previously worked as a reporter for media outlets Bauer Media (now Are Media), Yahoo Australia, and a content strategist and writer for various independent marketing agencies.

topics 6.1% growth ad spend Australia Dentsu Dentsu global forecast 2022 FIFA World Cup linear TV magazines oOh out of home Prerna Mehrotra Programmatic radio Socila TV Winter Olympics

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