Both MAGNA and GroupM are forecasting a slowing, but still showing strength, in Australia's advertising market growth next year.
They find that the global economic downturn won't be enough to push the industry into negative territory.
WPP's GroupM predicts Australia's advertising market to grow 3.4% in 2023, down from 10.9% in 2022.
And MAGNA, part of IPG, says Australia's market will slow to 5% from 8% in 2022.
Growth will be led by mobile advertising spending, which will increase by +12% to $A11.2 billion.
Lucy Formosa-Morgan, CEO MAGNA Australia: "With so many global and local pressures (Russia’s invasion of Ukraine, China’s COVID zero tolerance stance impacting manufacturing, inflation, seven interest rate rises, etc.) impacting consumers, we do envisage that consumer spending will start to reduce in the new year and as such we are forecasting that total ad spend for 2023 will be low single digit growth with only a handful of channels showing growth.”
GroupM is optimistic about the market and advertising:
- Large declines appear limited to select channels in select markets.
- Large advertisers are seeing revenue gains despite voicing caution.
- Unemployment remains low and new business creation remains a source of growth.
- Digital media continues to grow
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