[Marketing Week] Bob Koigi: Industry players' expectations of 2023
As the advertising, marketing, communication and media fraternity reflects on the mixed fortunes that 2022 presented, they are expressing divided feelings about what 2023 portends as new developments among them evolving tech, mergers and acquisitions and global shocks continue to shape the business landscape.
PR agency leaders in every region of the world expect increased profitability over the next 12 months, according to the new ICCO World PR Report 2022-2023. The expected profitability score was 7.0 out of 10, up from 6.7 in 2021.
Retaining key talent is the number one challenge as it was in 2021, with this issue especially pronounced in APAC and Africa regions, followed by motivating younger staff and developing junior staff.
As cost of living crisis reshapes business reality, Kantar, the world’s marketing data and analytics company, has revealed Media Trends and Predictions 2023, its annual forecast for how the media landscape will evolve in the year ahead.
The report gives a definitive view of coming media industry trends using Kantar’s market-leading data alongside evidence-based predictions and expert viewpoints. The insights will help media companies and brands navigate 2023 and plan for the future.
Media experts are calling out declining consumer trust as a top concern with advertising on social media platforms.
Despite that caution, the compelling reach and engagement of social media means the vast majority of media experts still plan to advertise on those same platforms next year. This is according to Integral Ad Science, IAS in its latest report.
At the same time, advertising investment is forecast to grow by 3.8% globally in 2023, according to the latest dentsu Global Ad Spend Forecasts report. The twice-yearly report which combines data from close to 60 markets worldwide, anticipates US$740.9 billion will be spent globally next year.
The dentsu Global Ad Spend Forecasts for 2023 points to a continued growth, although at less than half the pace seen in 2022 (+8.0%), a trajectory which will see industry advertising investment of approx. US$713.6 billion by the end of this year.
This, as more than one in two marketers (53%) expect programmatic advertising expenditures will fall in the coming year, owing in part to increased investments in walled gardens.
Ultimately, 15% expect to reduce programmatic spending by more than 50%, and an additional 20% expect to cut it by 26% to 50%, according to a survey commissioned by identity platform Lotame and conducted by PureSpectrum.
And The winter update of MAGNA’s Global Ad Forecast predicts media owners advertising revenues will reach $833 billion in 2023, a five per cent growth vs. 2022 ($795bn), slowing from +7% in 2022. This new 2023 growth forecast is 1.5 percentage points below MAGNA’s previous forecast (June 2022) due to the deteriorating macroeconomic outlook.
Bob Koigi is an editor at Marketing Report EU
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