The $850bn (£720bn) global advertising market is facing the prospect of a “car crash” next year as the cost of living crisis forcing households to drastically cut back on spending triggers companies to consider slashing their marketing budgets.
The advertising industry remains bullish about its prospects – the football World Cup is forecast to keep growth at a gloom-defying 8.4% this year, while 6.4% remains pencilled in for 2023 – despite mounting concerns that the economy it feeds off is heading for recession.
“Conventional wisdom would suggest that next year will be a car crash,” said one senior media industry executive. “Consumers are being squeezed harder than at any time since the 1970s. Many things will become secondary to essential spending, all of which creates a nasty cocktail for the ad industry.”
During the last advertising recession in 2009 the industry doyen Sir Martin Sorrell encouraged brands to…
