The dentsu Global Ad Spend Forecasts report for May 2023 reveals that global advertising spend is expected to grow, despite economic uncertainty. However, the increase is driven by media price inflation, resulting in a flat year for ad spend. The digital space is expected to experience a 6.6% three-year compound annual growth rate (CAGR) to 2025, which could be a temporary slowdown or a structural change towards slower growth. The media landscape is investing in its reinvention, with a focus on carbon management, accessible content, and innovative solutions such as generative AI and retail media. The industry is experimenting with new ad-funded video on demand plans and boosting TV investments. Despite the challenges, the future is promising with ad spend growth expected to accelerate in 2024.
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