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Spending on global advertising is expected to increase this year, with a record 14% to an all-time high, as the global economy emerges from the pandemic with a summer of sporting exuberance and consumption.
Estimates from Magna, a research group that is part of IPG Mediabrands, look closely, predicting global vendor spending will increase from $ 78 billion to $ 657 billion, largely driven by the booming digital ad market .
Vincent Létang, who directs the global forecast for the research agency, said it was “the strongest annual advertising growth that has ever been monitored by Magna,” far exceeding previous forecasts of major media sales agencies.
The positive trend, which is expected in all major markets, is a boost for participatory advertising groups such as WPP, Omnicom and IPG, as well as traditional media owners.
But Magna expects most of the new spending to go to digital advertising, where Google and Facebook are the dominant players.
The 15% rise forecast in the US market is the highest in the last four decades and represents an increase of 9 percentage points over previous estimates of Magna, especially driven by a recovery in consumption and return of major sporting events.
Advertising spending, especially in traditional media, was initially hit hard by the pandemic blockades. But a rapid shift towards online marketing drove global platforms like Google, Facebook and Alibaba, limiting the decline in global advertising spending by 2020 to just 2.5%.
Magna expects the rise of e-commerce and online marketing to continue this year, with digital ad formats capturing the vast majority of the sales recovery. Digital advertising is expected to grow by 20%, accounting for approximately 64% of total ad sales in 2021.
By contrast, traditional advertising media such as the print media, magazines, billboards away from home and radio are expected to grow again, but only at a much more modest 3% rate.
Magna hopes the return of drinks and car ads and a sporting summer, including the Euro 2000 football tournament and the Olympics in Japan, will help traditional television, with higher prices offsetting the declining number of audiences. Still, newspaper ad sales are expected to decline 4%, even in this year of recovery.
All 70 advertising markets around the world overseen by Magna are expected to see increases in marketing spending, led by the UK with a rebound of 16.8%, China with 16% and Brazil with the 15.2%.
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