Advertising firms are seeing growth in 2023 as customers continue to spend money on business advertising and keep an optimistic outlook for the rest of the year.
Key Details
- London-based ad firm WPP PLC has reported growth for 2023 and expects its like-for-like revenue, less pass-through costs, to grow between 3% and 5% this year, according to The Wall Street Journal.
- The company says customers have continued to spend on advertising despite economic uncertainty, and it has an optimistic outlook that customers will continue spending through 2023.
- Advertisers are expected to spend around $509 billion in 2023, ⬆️ 6% from $481 billion in 2022, according to findings by the Winterberry Group reported by Marketing Dive.
Why it’s news
WPP PLC owns agencies, including Ogilvy, Wunderman Thompson, VMLY&R, and media-buying business GroupM, and reported around $17.3 billion in total revenue for 2022.
Despite uncertain economic outlooks, many businesses have continued spending on advertising, and many ad firms expect growth for 2023.
Many marketing agencies were concerned that increased inflation would make customers scale back on advertising expenses, but many haven’t reported change, and some are reporting growth for the year.
WPP PLC has reported growth for 2023 with expectations of continuing the growth throughout the year. The company expects its like-for-like revenue, less pass-through costs, to grow between 3% and 5% this year, according to The Wall Street Journal.
Other ad agencies also expect growth including…
- Interpublic Group of Cos. ⬆️ 2% to 4%
- Omnicom Group Inc. ⬆️ 3% to 5%
- Publicis Groupe SA ⬆️ 3% to 5%
changes in the market
The marketing industry has become more competitive over the last few years and the way of advertising has switched to more online channels rather than traditional marketing channels.
Advertisers are expected to spend around $509 billion in 2023, and around 60% of that total is expected to be online channels such as e-commerce advertising, according to information from Market Dive.
WPP PLC began expanding its advertising business to digital channels.
“What we do is probably more valuable than it was five years ago, or certainly no less valuable,” says WPP PLC CEO Mark Read.