Ad Spend Forecast: Advertising market is growing
Published on:
Zurich, 22. March 2022 – Dentsu releases its Ad Spend Forecast 2022 with forecasts on the development of net advertising investments. The semi-annual study is based on data from over 50 markets in North and South America, Asia-Pacific and the EMEA region.
Globally, 2022 will be a year of rising advertising spending. After the sharp decline of -7.1 percent from 2020 and the record-breaking growth of 17 percent in the following year, which corresponds to a net investment of 682.5 billion US dollars, the dentsu experts are expecting global growth of 9.2 percent . The drivers of global development are the Olympic Winter Games, the Paralympics in Beijing, the FIFA World Cup in Qatar and the spending on the midterm elections in the USA. Remarkably, compared to the global financial and economic crisis of 2008, the upswing in advertising spending of 9.2 percent is almost three times as high as it was then. In 2011, growth reached only 3.4 percent in the second year after the financial crash.
If we look at Switzerland, dentsu expects net advertising investments to increase by almost 5.0 percent in 2022, despite ongoing measures to combat the pandemic. Compared to the previous year, at 7.4% percent, this was rather moderate but solid growth. At 8 percent, digital media will again be the strongest driver in 2022. They account for more than 50% of the investments, which will thus further expand their position as the number 1 advertising channel in Switzerland.
Print has suffered heavy losses in advertising spending in recent years. Both magazines and newspapers will struggle with the decline in reach and revenue and will continue the pre-Corona downward trend in 2022 (magazines -2.0 percent; Newspapers -1.8 percent).
In 2021, there was a strong investment in television – demand was even greater than supply, despite strongly growing inflation. For TV, however, advertising spending will grow only slightly next year at 3.9 percent. Some industries are still struggling with faltering consumption or supply problems. In addition, there is the ever-increasing competition from online video and streaming providers. Advertising investment in radio is expected to show a slight reduction of -1.9 percent this year and a share of 2.5 percent of total advertising spending.
As is well known, the last two years have been a turning point for Out-of-Home (OOH) and cinema, which are strongly dependent on the pandemic process. However, OOH has already recovered somewhat at the end of last year. Here, a growth in advertising expenditure of 2.1 percent is expected. Investments in cinema advertising are again expected to fall by double digits in 2022.
Table 1: Evolution of (net) investment in advertising at global and national level
| Figures in % | |||
| 2020 | 2021 | 2022f* | |
| GLOBAL | - 7.1 | 17.0 | 9.2 |
| NORTH AMERICA | -7.6 | 20.7 | 13.9 |
| UNITED STATES | -7.5 | 20.9 | 14.0 |
| CANADA | -9.4 | 15.1 | 10.9 |
| W. EUROPE | -9.0 | 15.0 | 5.4 |
| UK | -8.6 | 26.0 | 5.4 |
| GERMANY | -6.1 | 10.8 | 5.0 |
| FRANCE | -8.9 | 16.1 | 6.6 |
| ITALY | -12.2 | 12.3 | 3.1 |
| SPAIN | -18.1 | 10.7 | 4.8 |
| C&EE | -2.6 | 23.1 | 11.4 |
| RUSSIA | -4.3 | 17.5 | 11.2 |
| ASIA-PACIFIC | -5.0 | 14.4 | 5.9 |
| AUSTRALIA | -11.2 | 17.6 | 6.1 |
| CHINA | 1.6 | 19.2 | 6.0 |
| INDIA | -12.9 | 18.6 | 14.6 |
| JAPAN | -11.2 | 4.7 | 3.5 |
| LATIN AMERICA | -12.6 | 11.9 | 11.8 |
| BRAZIL | -22.6 | 5.6 | 5.0 |
(f) The percentages are forecasts.
Ad Spend Forecast per region Top 13 markets 2020-2022 by dentsu
Table 2: Percentage of advertising expenditure in Switzerland by medium
| TV | Newspapers | Periodicals | Radio | Cinema | OOH | Digital | |
| 2020 | 16.3 | 10.1 | 8.3 | 2.2 | 0.2 | 8.9 | 54.0 |
| 2021 | 14.9 | 9.4 | 7.7 | 2.9 | 0.2 | 8.2 | 56.7 |
| 2022f | 14.8 | 8.7 | 7.2 | 2.7 | 0.2 | 8.0 | 58.4 |
The percentage values are forecasts Ad Spend Forecast 2022 by dentsu
Jonas Eliassen, CEO dentsu Media Switzerland, comments: "The economy and the advertising market are developing positively for the second year in a row. Consumer sentiment from spring 2021 as a result of low incidences, rising vaccination rates and easing had quickly reached marketing and ensured a partly surprisingly fast recovery in advertising spending of almost all channels. Our forecasts show that we will continue to see relevant increases in 2022, with the strongest growth expected in digital spending. It is currently difficult to estimate and not considered in our forecasts what influence the Russian war will have.”
Download the Ad Spend Report here: https://www.dentsu.com/uk/en/reports/ad_spend_january_2022
Contact:
Margherita Masiello
Media and Communications dentsu Switzerland
+41 78 235 66 65
margherita.masiello@dentsu.com
Further information:
Dentsu Switzerland is part of dentsu International and consists of leading brands such as Merkle, Carat, iProspect and Vizeum. Dentsu helps its customers build relationships with their consumers and make sustainable progress for their business. With excellent services and solutions in the areas of media, customer experience management (CXM) and creative, dentsu operates internationally in over 145 markets worldwide with more than 46,000 dedicated specialists.
www.dentsu.com/ch