Global advertising and marketing spending continued to rebound in 2022 -- rising 7.9% to $1.568 trillion in 2022 -- but it will decelerate slightly this year due to macroeconomic challenges, according to the 2023 edition of PQ Media’s annual forecast.
This year, global advertising and marketing spending is projected to rise 5.3% to $1.651 trillion.
The U.S. continues to outpace the global marketplace -- rising 8.5% in 2022 to $622.1 billion, and is projected to expand 5.9% this year to $659 billion.
The growth was driven by double-digit expansion in 35 of 45 media/marketing channels tracked by PQ, especially “smart technology marketing,” streaming audio and podcasting, streaming video, digital out-of-home media, influencer marketing and digital gaming.
As a result, pure-play advertising actually expanded at a slightly slower rate than overall marketing spending.
Globally, ad spending grew 7.5% to $714 billion, while other forms of marketing rose 8.2% to $854 billion in 2022.
Digital and alternative media spending rose 13.0% to $746 billion, while traditional media spending rose only 3.6% to $823 billion.
As for macroeconomic challenges, PQ cited an economic slowdown in the second half of 2022, high inflation, continuing inventory and supply-chain issues, as well as energy supply shortages and increasing interest rates.
“As a result, some brands cut budgets in the second half of 2022, leading to overall growth tapering into the first quarter of this year. But, while we expect slower full-year expansion in 2023, fears of a broad-based global recession have subsided somewhat,” PQ Media CEO Patrick Quinn, explained, adding: “Despite the economic slowdown, many of the top 20 global markets and digital and traditional media platforms had returned to pre-pandemic levels by year-end 2022.”