The news: The US ad market declined for the fifth month in a row in October, per MediaPost and the Standard Media Index’s US Ad Market Tracker.
Ad spending fell 3.2% year over year to cap months of declines amid an uncertain economic outlook that’s affected consumer buying. The downward trend will likely extend through the end of the year given November and December 2021’s higher-than-normal advertising spending, per MediaPost.
The slowdown: Inflation, higher interest rates, and a general return to outdoor life meant that 2022 ad spending couldn’t sustain the abnormally high levels of 2021. But despite the overall slowdown, there is still growth in key sectors.
Our take: The ad industry’s spending decline will likely continue through the end of the year, but time will also clear up issues in digital advertising that are making advertisers wary. For older channels like linear TV, serious changes will have to be made to keep up with digital’s pace of growth
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