Economic rebound prompts Magna to raise US advertising forecasts
NEW YORK– Improving economic conditions, which increased total US ad spend by 31.8% in the first half of 2021, prompted Magna to revise its US ad forecast, with a new prediction according to which total advertising will increase by 23.2% to reach $ 277.6 billion for 2021 and that video advertising on TV, OTT and digital will see an increase of 11.4% to reach $ 75.7 billion by 2021 .
In the video sector, the most dynamic areas will be connected TVs and OTT (which are expected to grow 34% to $ 5.4 billion in 2021) and digital video (up 45.8% to 12, $ 4 billion).
But national broadcast and cable spending will see a healthy 7.4% increase to $ 40.0 billion and local broadcast and cable will increase 17.9% to $ 17.4 billion in 2021 if the elements exceptional items such as election and Olympic Games expenses are excluded.
Otherwise, local broadcasting and cable would suffer a 4.7% drop.
Social media was another bright spot in the ad forecast, with an expected increase of 36% to $ 58.8 billion in 2021.
Vincent Letang, Executive Vice President of Global Market Intelligence at MAGNA, noted that “the unprecedented growth in advertising spend in the first half (+ 32%) was more than weak due to the lockdown and the recession of COVID the year last. This has been caused by a unique combination of national brands reconnecting with consumers and competing for a limited amount of traditional media inventory, as COVID’s lasting changes in lifestyles and marketing methods continue to fuel. huge digital advertising spending from big brands and small businesses. These continued organic growth drivers, combined with Olympic budgets and midterm election spending, will continue to drive double-digit spending growth in the second half of the year and into 2022.