Global Out-of-Home advertising could surpass print and become the third most popular advertising format by 2026, according to a report by ad agency dentsu.
dentsu’s Global Ad Spend Forecasts for 2023 says global advertising spending is expected to grow by 3.3% in 2023 to reach US$727.9 billion.
“The adjusted dentsu Global Ad Spend Forecasts for 2023 points to continued growth, albeit adjusted marginally downwards from the 3.5% predicted in the December 2022 report, in the most part due to macroeconomic factors,” dentsu said. “Exploring behind the headlines, the report also shows growth driven by media price inflation rather than increased advertising volume.
“The global outlook however is more positive, with spend set to accelerate faster in 2024, increasing by 4.7% to reach US$762.5 billion. This boosted ad spend is being driven by major sporting and societal focal events such as UEFA Euro Championship and the US presidential election.”
Except for print ad spending, which continues its decline (-4.8%), other media channels are holding ground, with incremental year on year increases for Out-of-Home (+3.8%), cinema (+2.1%) and audio (+0.8%), the report said.
Peter Huijboom, dentsu
“This pattern of spending, based on our long-term extrapolations, could see Out-of-Home surpass print spend and become the third most popular format, sometime during 2026,” said Peter Huijboom (right), global CEO, media international markets, dentsu. “Of course, we’re excited about the impact Generative AI could have on our industry with the arrival of new in-channel opportunities for brands to embrace, so we’ll need to see if it remains the case.
“For years now we’ve seen the industry pivot towards digital, more than doubling investment in the last five years, thanks in part to the almost unlimited potential to reach, engage and sell to individual consumers. It has been one of the big drivers for growth, but with finite marketing budgets available to brands – it’s clear we are now starting to reach a point of digital maturation within the campaign mix alongside more traditional channels.
“There are still some markets, for example India where the digital potential is in its adolescence, who continue to see rapid growth in digital spending – contributing to the global uplift. But it is also through innovations in tech, updated platforms, new channels and changes in planning behaviours, we’ll retain this consistent growth within digital investment worldwide.”
dentsu's advertising expenditure forecasts are compiled from data collated until the second half of April 2023 and based on local market expertise. Dentsu provides forecasts for 58 markets covering the Americas, Europe, Middle East, Africa and Asia-Pacific by medium: digital, television, print, out-of-home, audio, and cinema.
The full dentsu Global Ad Spend Forecast can be downloaded here: dentsu.com/ad-spend-may-2023
https://www.group.dentsu.com/en/
