The news: Standard Media’s US Ad Market Tracker rose in May for the first time in 11 months, jumping 2.5% in a possible sign of the end of a nearly year-long advertising cooling period that began last summer as interest rates began to rise.
The rebound: The first quarter of the year saw some of the steepest spending declines. Outlays fell 12.1% in December, 5.8% in January, 8% in February, and 8.4% in March.
Our take: Advertising may be pulling out of a cold season, but growth still won’t return to pandemic rates soon. Our March forecast predicts single-digit worldwide ad spend growth of 5.8% in 2023, and recent downgrades from groups like Dentsu argue that ad spend growth is an illusion driven by inflation.
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844