(MENAFN) Despite mixed economic signals, advertising is still expected to grow in 2023, according to a quarterly forecast from Magna, a media intelligence and investment firm that is part of Interpublic Group of Cos.' Mediabrands. Media owners' U.S. ad revenues are expected to grow 3.4% to $326 billion this year, which is slightly down from its December estimate of 3.7% growth. However, the firm expects little or no growth in the first half of the year, followed by a recovery in the second half as the economy becomes more stable.
Vincent Létang, Executive Vice President of Global Market Intelligence at Magna and author of the report, said that they were always expecting more slowdown in 2023 with tepid macroeconomic expectations. However, recent economic signals have shown improvement in comparison to three months ago. The economy was showing early signs of improvement in January and February, including receding inflation and slow but steady growth in gross domestic product.
The resilience of the advertising industry in the face of economic turbulence is notable, according to industry professionals. They say that this would have been unlikely during earlier periods of turbulence. This resilience is likely due to a combination of factors, including increased digital spending, growth in e-commerce, and a shift towards outcome-based advertising.
Despite the positive forecast, financial turbulence in recent weeks has caused anxiety for consumers and businesses. It is essential for the industry to remain vigilant and adaptable in the face of changing economic conditions. By staying informed about market trends and consumer behavior, advertisers can continue to innovate and thrive in 2023 and beyond.
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