Even though marketers anticipate a recession, economic indicators like unemployment are absent.
Due to mixed economic outlooks for 2023, marketers are reducing ad expenditure and ad spending forecast. GroupM and Interpublic Group’s (IPG’s) Mediabrands have lowered their ad spend estimates for the coming year.
GroupM and Magna – a unit of Mediabrands – had initially predicted their global ad spending to rise by 6.4% and 6.3%, respectively, back in June 2022. But, with economic concerns growing, GroupM revised its forecast to a lower 5.9% ad spend growth. Similarly, Magna also reduced its ad spending to 4.8% growth or $833 billion, in 2023.
Even though the US unemployment rate in November was just 3.7%, experts expect the economy to go into recession. These concerns stem from 40-year record-breaking inflation of 9.1%.
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