Magna’s fall update of its US ad forecast shows how the ad market has recovered from the worst effects of the coronavirus pandemic, and some sectors particularly hit by the health crisis, including restaurants and the auto industry, have seen high growth. All in all, Magna’s recovery in the first half was stronger than expected. However, according to Vincent Letang, executive vice president of global market intelligence at Magna, the increase in advertising spending isn’t just due to the delay in COVID-induced blockages and the recession that followed.
“[Growth] has been driven by a unique mix of national brands reconnecting with consumers and competing for a limited amount of traditional media stock, while COVID’s lasting changes in lifestyle and marketing methods remain a major asset. cost for large digital brands. Brands and small businesses,” Letang said in a statement.
Both large consumer brands and small businesses, some of which switched to digital marketing for the first time, have contributed to the acceleration of digital advertising. Pure digital advertising revenue grew nearly 50% to $81.5 billion in the first half, thanks to 60% year-on-year growth in the second quarter, after growing 38% in the first quarter. This accelerated shift can benefit agencies that have invested in digital and data-driven assets, whether agency groups that have done more mergers and acquisitions or competitors like S4 Capital, as clients look to reach 66% of consumers. . .
For 2022, Magna predicts, perhaps optimistically, a year completely free of COVID constraints and supply or capacity issues. With this economic growth and consumption level, along with spending on the Winter Olympics ($700 million) and political spending around the mid-term elections (almost $6 billion), Magna expects revenue of advertising media grow 12%. Increase to $310 billion.