"The slowdown compared to 2022 (8%) is caused by the slowdown of the Portuguese economy this year, with an expected GDP [Gross Domestic Product] growth of 2.7%, down from 6.7% in 2022".

Taking into account the inflationary environment, "several large sectors are reducing advertising investments: high turnover consumer goods (food, beverages, personal hygiene, household goods) and the financial sector".

Portuguese consumers "are increasingly willing to consider own label products (retailer brands) that have a lower price, which will harm 'premium' brands.


Growing markets

On the other hand, "various sectors are maintaining or increasing marketing activity and advertising investments, with emphasis on retail, telecommunications, cars and travel".

Investments in television represent around 45% of the total advertising market, followed by digital (34%), OOH ['Out Of Home'] (14%) and radio (5%).

"Forecasts for 2023 point to a 2% decrease in investments in TV, while radio should maintain its revenues and OOH should continue to grow (23%) and gain market share", says the report.

The analysis "also concludes that digital media formats are underdeveloped in Portugal compared to the rest of Western Europe (32% of the total market in 2022), although they are growing at a much faster pace (15%), driven by factors of organic growth".

The IPG Mediabrands group "forecasts growth in all digital formats: 'search/e-commerce' formats (15%), social (10%) and digital video (17%)".

For the coming years, it is estimated that the Portuguese advertising market will grow at a higher rate, following the evolution of the economy".

According to the report, "forecasts point to a growth of around 6% in total annual advertising revenues from 2024 to 2027, with emphasis on digital media with a faster growth rate".