US adspend set to break $300bn – but forecasts still being reined back

US advertising is forecast to exceed $300bn in 2022 for the first time according to Interpublic’s Magna although Magna has cut its forecast from around 11% to 9.8% and reduced 2023 to 4.8% from 5.8%.

Growth factors include growing retail media networks such as Walmart’s bringing marketing budgets into digital advertising, programmatic spending in digital audio and digital out-of-home formats, and new ad-supported tiers from streaming services such as Disney+ and Netflix.

Magna says: “Economic uncertainty and rising inflation are affecting several industries and driving brands and local businesses to moderate their marketing expenses in the second half.

“Food, drinks, personal care and household goods are especially at risk as they are forced to increase product prices and face the possibility of consumers trading down in favor of cheaper brands. Restaurants and retail face a similar business challenge while some industries, like mortgage lenders, see their businesses suffer from the rise of interest rates.”

There will no doubt be further revisions as economic clouds gather. So far none of the main UK forecasters have factored in the current mayhem in financial markets following the recent “mini-budget” but they’re bound to be down too – rather more dramatically.

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