Global ad spending is expected to increase this year, hitting a record 14% to hit a record high as the global economy emerges from the pandemic with a summer of sports and consumer exuberance.
Closely watched estimates from Magna, a research group that is part of IPG Mediabrands, predict that global marketer spending will rise by $ 78 billion to $ 657 billion, in large part thanks to the booming advertising market. digital.
Vincent Létang, who heads the global forecast for the research agency, said it was “the strongest annual advertising growth ever followed by Magna,” far exceeding previous forecasts major media sales agencies.
The positive trend, expected in all major markets, is a boost for advertising holdings such as WPP, Omnicom and IPG, as well as traditional media owners.
But Magna expects the lion’s share of new spending to go to digital advertising, where Google and Facebook are the dominant players.
The expected 15% increase in the US market is the highest in four decades and represents an increase of 9 percentage points from previous estimates by Magna, especially given a pick-up in consumption and the return of big events sportsmen.
Advertising spending, especially in traditional media, was initially hit hard by the pandemic lockdowns. But a rapid shift to online marketing has boosted global platforms such as Google, Facebook and Alibaba, limiting the decline in overall global ad spend in 2020 to just 2.5%.
Magna expects the surge in e-commerce and online marketing to continue throughout this year, with digital ad formats capturing the vast majority of the sales recovery. Digital advertising is expected to grow by 20%, accounting for around 64% of total ad sales in 2021.
In contrast, traditional advertising media such as print, magazines, billboards and radio are expected to resume growth, but only at a much more modest rate of 3%.
Magna expects the return of drinks and commercials for cars and a summer of sports, including the Euro 2000 football tournament and the Olympics in Japan, will help traditional television, with higher prices offsetting the decrease in the number of audiences. However, newspaper ad sales are expected to decline by 4%, even in this year of recovery.
Each of the 70 ad markets worldwide monitored by Magna is expected to see increased marketing spend, with the UK leading with a rebound of 16.8%, China 16% and Brazil 15.2%.