Citing media price inflation, as well as geopolitical unrest, Dentsu this morning became the fourth of the Big 4 to revise its U.S. and worldwide ad-spending outlook downward for this year.
"Due to continued uncertainty, the current and historical comparison data has also been adjusted to remove Russian investment from the forecast, to better reflect the rest of the international ad spend trends and predictions," the agency said in its midyear update revising its January 2022 estimates down nearly a percentage point for the U.S. and half a point for worldwide ad spending this year (see above).
The downward revisions follow similar trends issued by WPP's GroupM, IPG Mediabrands' Magna, and Publicis' Zenith units last month.
Based on Dentsu's revisions, Madison Avenue's 2022 consensus for worldwide ad growth is projected to be 8.9% this year, will dip to 5.6% in 2023 and will trend upward to 6.5% in 2024.
The revised consensus estimate for U.S. ad growth now stands at 12.1% in 2022, 5.9% in 2023 and 7.5% in 2024.