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India fastest-growing market globally at 14.6%: dentsu Global Ad Spend Forecast report

Overall ad spend growth is boosted by key sporting events such as IPL & elections, says report.

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Mumbai: Advertising expenditure in the Asia Pacific is expected to grow by 5.9 per cent, with India being the fastest-growing market globally at 14.6 per cent, followed by the US, Russia and Canada, according to dentsu's Global Ad Spend Forecast report. Digital forecast is expected to increase 9.6 per cent to a share of 61.1 per cent of total APAC advertising spend, even as advertising investment overall is forecast to grow by 9.2 per cent globally in 2022, as per the report.

In APAC, overall ad spend growth is boosted by key sporting events such as the Indian Premier League, FIFA World Cup, Winter Olympics, and country elections in Australia and India.

Moving towards a second consecutive year of growth following the five per cent market dip in 2020, 2022 is projected to build on a stronger than expected recovery in 2021 which itself saw a record-high 14.4 per cent growth in APAC, totalling $241 billion. The twice-yearly report which combines data from over 50 markets globally, anticipates $745 billion will be spent globally. 

Digital and television continue to be the two powerhouses driving global and APAC ad spend, yet with opposite dynamics. Following a 24.8 per cent increase in 2021 (vs 29.1 per cent globally), dentsu forecast digital investment to grow by 9.6 per cent (vs 14.8 per cent globally) in 2022, fuelled by Social and Programmatic in APAC. This will result in the digital share of spend increasing to 61.1 per cent ($150 billion) of the total ad spend in APAC, over twice as big as the television share of spend (24.5 per cent) in 2022.

Linear TV ad spend increased by 5.1 per cent in 2021, the highest rate since 2013. In 2022, dentsu forecast linear TV ad spend to grow by 1.4 per cent to reach $60 billion in APAC. Unlike digital and despite staying in high demand, dentsu is seeing linear TV share of spend on the decline – both globally and in the region – as connected TV and video on demand (VOD) grow.

Out-of-home (OOH) and cinema will both see encouraging growth in 2022, respectively 12.8 per cent and 23.4 per cent globally (vs 2.8 per cent and 30.0 per cent in APAC). Radio too is forecast to grow, yet at a slower pace of 1.5 per cent in APAC (vs 2.0 per cent globally). As with previous predictions, ad spend in newspapers and magazines will continue to decline globally and in APAC. 

Globally, the industries that will see growth in ad spend this year will include the beleaguered travel industry which is forecast to see a 10.3 per cent rise. There is also confidence the automotive advertising spend will grow by 7.6 per cent in 2022. Growth follows an 11.5 per cent increase in 2021 and steep declines in 2020 of -15.9 per cent. With pent-up demand and a trend towards personal vehicles in how people want to travel post-pandemic, there is confidence in the recovery of the automotive industry.

Looking further ahead, APAC ad spend is predicted to grow by 5.6 per cent (vs 4.6 per cent globally) in 2023 and 4.9 per cent (vs 5.8 per cent globally) in 2024 – exceeding growth before the pandemic (4.1 per cent in 2019). Digital is forecast to increase its share of spend domination to 64.6 per cent in APAC (vs 59.4 per cent globally) in 2024. Of course, many factors contributing to the uncertain economic outlook could influence the predictions, from the evolution of the pandemic to supply chain issues, and dentsu recommends the industry keep a close eye on key economic indicators.

“APAC region is expected to post robust growth in ad spend in 2022. India, Hong Kong and Vietnam will drive double-digit growth with the rest of the region showing strong growth," said dentsu International CEO Media APAC Prerna Mehrotra. " The share of digital spends in APAC is set to increase to 61.1 per cent up from 50.1 per cent in 2019 (pre-covid), driven by Greater China and ANZ. TV as a platform will continue to play a key role especially in Southeast Asia and South Asia."

“Marketers will need to be nimble, leaning on technology and maximizing opportunities in video, social, connected TV and e-commerce. The use of data to drive business outcomes without compromising privacy or security will continue and we expect data collaboration to be a big focus for 2022. In light of the ongoing global turbulence and recovery, we will continue to work with brands to accelerate efforts to engage consumers and drive attentive reach,” she further added.

When compared to previous global financial and advertising crises, notably the financial crash of 2008, this rebound is almost three times greater, said the report. In 2022 the growth forecast at 9.2 per cent is nearly three times the 3.4 per cent growth in 2011 – the second-year post-global financial crisis. In 2022 the global ad market exceeded the 2019 pre-pandemic level of spend by 18.7 per cent, whereas in 2011 the global ad market continued to be one per cent lower than in 2008.

“The bounce back from the early pandemic impact continues to be strong, especially in digital," remarked dentsu International Global CEO media and global clients Peter Huijboom. "As we spend more time consuming digital media, brands have the opportunity to tap into the increased flexibility in which consumers engage through multiple touchpoints. Businesses who truly understand these developed human behaviours have the best opportunity to build lasting relationships with them.”

“It also comes as no surprise of the increased popularity in gaming. Dentsu launched its global gaming proposition in 2021. Along with the burgeoning Metaverse, there has never been a more exciting time for brands to experiment, innovate and engage with their customers - as all forms of media are increasingly more central to daily life and routine,” he further said. 

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