2022 Mid-Year Advertising ForecastJUNE 2022G L O B A L
JUNE 2022 • THI S Y EAR NEXT Y EAR IGLOBALINTRODUCTIONGLOBAL ECONOMIC BACKDROPTHE IMPACT OF NEW GOVERNMENT POLICIESADVERTISING INDUSTRY GROWTHMEDIA CONCENTRATIONSREGIONAL GROWTH TRENDSCONCLUSIONAPPENDIXU.S. FORECASTU.K. FORECASTAUTHORSMEDIA CONCENTRATIONBLURRY MEDIA DEFINITIONSAND DIGITAL EXTENSIONSCONTENT SPENDINGHISTORICAL REVISIONS2022 BY THE NUMBERSSUMMARY DATA TABLES03040918132225262833421314162638392
INTRODUCTIONJUNE 2022 • THI S Y EAR NEXT Y EAR IGLOBALWe now expect growth in ad revenue for pure-play digital platforms of 12% in 2022, slower than the 32% pace observed in 2021. As a major driver of last year’s gains, perhaps it should have been imprudent for anyone to expect e-commerce-related growth to keep pace with the high-flying numbers of 2021, but the relative degree of deceleration — not necessarily decline — this category of advertisers is likely having on digital advertising appears significant. Although typical large brands with well-diversified media plans may allocate half of their budgets into digital media, the average, covering marketers of all types and sizes — including many who are too small to use anything other than digital media —is much higher at 67% this year.Television, which retains its critical, if increasingly secondary, role for larger brands,is also poised for solid underlying growth this year — at least relative to prior expectations — of 4%, continuing to rebound from the doldrums of the early pandemic. Ad-supported streaming services are likely buoying the medium as they offer marketers a similar channel to hit their reach and frequency goals, but over time those connectedTV environments are likely to capture shares of existing linear TV budgets more than they will drive money toward it. Notably, television is becoming increasingly global in ways it never was before. Mostly U.S.-based streaming services continue to invest aggressively in local-language content as they move into foreign markets and position themselves to gain audience shares from historically dominant incumbent broadcasters with geographic limits to their operations.The impact of government policies and preferences on the ad-supported media is another increasingly important trend impacting the industry. Larger scale efforts to curb the influence of major tech companies and regulate platforms, like the EU’s Digital Services Act, are taking aim at Apple, Google and Meta via de facto or de jure efforts to break up those companies. Other regulatory initiatives are popping up in America, too, with some at the state-level taking a different, politically charged approach by attempting to codify into law that platforms cannot censor content on their sites as they would like.Source: GroupM, World BankMany sectors are seeing significant growth in advertising revenue, yet there are fears of recessio...
