The World Advertising Research Centre (WARC) has published its 2022-23 Ad Spend Outlook, examining the impact of the ongoing global economic slowdown.
Bringing together data from 100 global markets, the latest forecast indicates that worldwide ad spend is predicted to increase by 8.3% this year, totalling US$ 880.9 billion before slowing to growth figures of 2.6% in 2023.
The WARC also found that despite the unfavourable economic climate, very few product sectors are actively cutting ad investment, with most to increase their spending over the coming 24 months.
Despite this continued investment, the WARC has downgraded it predicted growth figures for the global ad market by $90 billion for the next two years, despite forecasting that the worldwide ad trade will top $1 trillion by 2025.
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“With the growth rate of global output now set to halve and acute supply-side pressures fanning inflation, the economic slowdown has removed close to $90bn from global ad market growth prospects this year and next,” the WARC’s director of data, intelligence and forecasting, James McDonald said.
“Yet brands are still spending as the Covid recovery continues, and global ad trade remains on course to top $1trn in value by 2025.
He added: “Platforms with rich sources of first-party data – most notably Amazon, Google and Apple – are well placed to weather future headwinds by offering measured performance in a climate where return on investment becomes paramount.”
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