Total ad spend in australia will grow 5% in 2022, trailing growth of 18% this year, according to analysis by Zenith.
The global ad market will continue its recovery from the 2020 downturn with 9.1% growth in 2022, after 15.6% growth in 2021, according to Zenith’s Advertising Expenditure Forecasts report.
Globally, advertising spend will reach US$705bn in 2021, up from US$634bn in 2019, and will rise to US$873bn by 2024.
In Australia, Zenith’s National Head of Investment, Elizabeth Baker says digital and TV ad spend recovery has been rapid, and recent lockdown restrictions in Australia have not appeared to dampen growth.
"Consumer confidence is relatively stable, despite the slight drop over the last weekend of November, following omicron news and international border closure announcements," she says.
"However, retail outlook appears to be healthy with major household item purchase intent remaining strong.
“The Tokyo Olympics provided a strong cash injection in Q3 advertising investment.
"Whilst we would typically see a contraction of revenues in the year following the Summer Olympics, the combination of premium sporting events, The Ashes, Winter Olympics and Commonwealth Games, with a Federal Election in Q2 2022 as well as some state elections should facilitate ad spend stability, especially across TV and Digital."
Digital ad spend in Australia is forecast to increase by 21% to $11.2bn from last year.
The retail category, with double-digit growth across all channels and online retail sales growing by 25%, will continue to thrive as brands invest in digital transformation.
Zenith’s National Head of Digital & Data, Joshua Lee: "Accelerating a direct-to-consumer and first-party data strategy will require brands to move away from just the transactional and include experiential customer experiences across paid and owned channels.
"This will create more positive brand and online shopping experiences, reinforcing e-commerce behaviours and loyalty well after the pandemic.
"For media owners, Australia’s largest publishers are in a race to build out their own identifiers before third-party cookies depreciate in 2023. Data ownership through digital transformation will help steal share from the walled gardens where Google, Facebook and YouTube currently make up more than 80% of Australia’s digital advertising market.”
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