MRSZ: In 2023, the spending of the media and communication market may decrease even nominally

According to the fifth MRSZ Barometer survey conducted by the Hungarian Advertising Association (MRSZ) and the Scores Group research institute, among company managers in the communications industry, the proportion of those expecting a decline has increased to 17 percent by the beginning of the year from 6 percent the previous year, and 40 percent of company managers expect an increase. 30 percent of the respondents expect an increase in sales in their own company, after 54 percent the previous year. 45 percent of companies expect the labor market situation to improve, but the rate of pessimistic outlook is still 50 percent.

According to the survey, the communication profession will face the same challenges in 2023 as in 2022

The surveyed companies typically tried to reduce their rising costs by postponing developments (36 percent) and investments (33 percent), as well as limiting participation in professional conferences and events (29 percent), and more and more people are switching to offices with lower energy requirements (16 percent). In order to mitigate the negative effects, 30 percent of those surveyed plan to cut staff, and every fourth company decides to postpone salary increases or freeze wages. 15-15 percent of the respondents used the dismissal of freelancers and the postponement of professional training. 12 percent of those who completed the survey were affected to a great extent, and 56 percent were moderately or slightly affected by the elimination of the kata tax in 2022.

The MRSZ’s annual survey revealed that no change is expected in the order of the “slices of the media pie” worth HUF 321 billion this year

The rates are also similar to the previous year. Digital advertising spending – which may grow by 25 percent this year and approach the television segment in value – may be concentrated in local media, in contrast to global advertising spending, whose growth rate may slow down to 2.7 percent in 2023 from the previous year’s 5.5 percent growth rate. In 2023, local digital advertising spending may increase from HUF 55.1 billion in 2022 to HUF 69 billion this year, and the value of advertising spending on global platforms may increase from HUF 107.4 billion to HUF 110.3 billion in the same period. Marketing communication expenses may decrease by 8.5 percent this year, to HUF 233.4 billion, which corresponds to the level of 2021. Due to inflation, the decline can reach 20-25 percent in real terms, the survey reveals.

MTI