According to a GroupM report, ad revenue growth for the pure-play digital platform could exceed 11%, but still fall short of last year’s growth rate
According to a GroupM report, ad revenue growth for the pure-play digital platform could exceed 11%, but still fall short of last year’s growth rate
global advertising industry The sector is expected to grow 8.4% this year, despite the ongoing geopolitical conditions around the world and fears of a recession, said a report by the sector on Monday.
The figure excludes the impact of US political advertising, which is on track to reach $13 billion in revenue this year, up from $12 billion in 2020, a unit of WPP PLC, showed advertising agency GroupM.
advertisement Marketwhich generally tracks the comprehensive health of economiesThat’s settling after experiencing highs in 2021, when it was fueled by strong economic recovery and personal consumption.
Sources of growth in 2022 include a growing number of new small businesses, which are likely to be at a higher level than advertising Business they are changing; Venture-funded “new economy” advertisers are seeking growth; And Chinese-based marketers advertise overseas, the report showed. A possible decline in e-commerce and a hike in interest rates will impact growth.
“Although the overall economy and environment is more negative now than in December, broadly speaking, people in our industry and I think many pundits are highly negative relative to the reality of how the overall economy is faring,” said Brian Weiser. Told. Chairman of Business Intelligence at GroupM in a call with reporters.
Report estimates ad revenue for pure-play digital The platforms are expected to grow by 11.5% in 2022, down from 32% growth in 2021. Digital advertising on those platforms will represent 67% of the industry’s total revenue this year, excluding US political advertising.
Television advertising is expected to grow 4.4% in 2022, fueled by ad-supported streaming services such as Pluto, owned by Paramount Global and Tubi, owned by Fox Corp. Broadly speaking, TV advertising growth is poised to flatten over the next five years. According to the report, for many marketers, Alphabet-owned YouTube will “increasingly look like an alternative to television”.