Advertising giant GroupM predicts a somewhat brighter 2022 compared to initial expectations, yet the outlook remains suboptimal.
Global and U.S. advertising revenue growth rates experienced downward revisions in 2022 compared to the initial forecasts by industry experts, GroupM, and the World Federation of Advertisers (WFA).
In its year-end "This Year Next Year" report, GroupM stated that global advertising revenue grew by 6.5% in 2022, a lower figure than expected. The U.S. market, however, showed a stronger performance with a 7.1% growth and $305 billion in revenue.
Despite these figures falling short of the initial projections, they still suggest a reasonably healthy position for the advertising industry amidst an economic downturn. A recent study from the WFA and Ebiquity shared a similarly optimistic prediction.
GroupM's mid-year update had initially projected a global ad revenue growth of 8.4%, down from their end-of-2021 forecast of 9.1%. For the U.S., the initial forecast was around 9%, which was later revised downward to reflect a more conservative outlook as the year progressed.
While the WFA does not typically issue specific growth rate projections, its members and reports generally reflect consensus with other major forecasters like GroupM.
In summary, global advertising revenue growth for 2022 was revised down from approximately 9.1% to 8.4% by GroupM. The U.S. advertising revenue growth was also revised down, with some sources citing around 8% as the updated forecast. The WFA does not issue specific growth rate forecasts, but aligns with industry sentiment, which echoed these downward revisions.
The downward revisions in the advertising revenue growth rates, as suggested by GroupM and the World Federation of Advertisers, might indicate a need for strategic adjustments in finance and business positions within the industry. In spite of the revised growth figures, the industry is still projected to exhibit positive growth, implying a continued focus on growth opportunities.
