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Global advertising spending is projected to rise this year, to a record 14 per cent as the world economy emerges from the pandemic, the summer of sport and consumerism.
Magna, a research team that is part of IPG Mediabrands, estimates that global spending by marketers will increase by $ 78 billion to $ 657 billion, driven primarily by the booming digital advertising market.
Vincent Létang, who directs the global forecast for the research agency, said it is “the strongest annual growth of ads ever monitored by Magna,” far surpassed previous predictions media sales agencies.
It is a boost to the promotion of advertising groups like the expected positive trend in all major markets WPP, Omnicom and IPG, as well as regular media owners.
But Magna hopes to focus most of its new spending on digital advertising, where Google and Facebook are the main players.
The projected 15 percent rise in the U.S. market is the highest in four decades and is a 9 percentage point increase from Magna’s previous estimates, mainly driven by rising consumption and returns from major sporting events.
Expenditure on advertising, especially in traditional media, was initially hit hard by the pandemic blockade. But rapid changes to online marketing drove global platforms like Google, Facebook and Alibaba, limiting global advertising spending spending to 2.5 percent by 2020.
Magna expects the rise in e-commerce and online marketing to continue this year as well, as digital ad formats will receive the majority of sales revenue. Digital advertising is projected to grow by 20 percent, to about 64% of all ad sales in 2021.
On the other hand, traditional advertising media such as print, magazines, out-of-home advertisements and radio are expected to return to growth, but the 3 per cent rate will be much lower.
Magna hopes that the return of drinks and car ads and summer sports such as the Euro 2000 football tournament and the Japanese Olympics will help traditional TVs, as higher prices will offset the declining number of audiences. Newspaper ad sales, however, are expected to fall by 4 percent, even in this recovery.
Magna-controlled 70 worldwide advertising markets are expected to see increases in marketing spending, with the UK leading the way with a rebound of 16.8 per cent, China with 16 per cent and Brazil with 15.2%.
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