Record Advertising Growth in 2018: +7.2%
Latest MAGNA Report Reveals the Ad Industry is Experiencing its Strongest Growth Since 2010. Ad Sales are Driven by Robust Economic Growth in the US and BRICs, and $6 billion of Cyclical Spend. APAC advertising growth will increase by +7.1% in 2019 to reach $177 billion.
· In its latest report on global advertising market trends, released December 3, 2018, MAGNA reveals that global advertising revenues grew by a record +7.2% in 2018 to reach a total of $552 billion in the 70 countries analyzed by MAGNA.
· That’s the strongest growth rate since 2010, when the ad market recovered after two years of recession, and the second strongest since 2004, thanks to the combination of strong demand and cyclical drivers.
· Global ad spend remains strong (US +7.5%, China +12%, Russia +14%, India +14%) thanks to robust economies, while Western Europe lagged behind due to economic slowdown and political uncertainty.
· Digital advertising sales grew by +17% in 2018 – 1.5% above previous forecast – to reach $251 billion or 45% of global advertising revenues, driven by search (+16%), video (+29%), and social media (+33%). Non-digital ad sales (linear TV, linear radio, print, and out-of-home) were flat (+0.2%) at $301 billion.
· MAGNA increases its forecast for 2019 advertising growth to +4.7%, as the macro-economic environment is expected to remain strong in most of the top advertising markets (e.g. US, China, India).
· Digital advertising growth will slow down next year (+13%) but, at that rate, MAGNA predicts that digital media ad formats will attract half of the world’s total ad dollars as early as 2019 or 2020.
· For 2019 MAGNA predicts APAC advertising to increase by +7.1%, to reach $177 billion. Growth will be only slightly slower than 2018’s +7.7% growth rate, but higher than prior expectations (+6.0% in June 2018).
· Growth in APAC is led by digital advertising formats, which will increase by +16% in 2019 to reach $81 billion, representing 46% of total ad sales. Within digital advertising, mobile formats are significantly outperforming desktop formats (+26% mobile spending growth expected in 2019, compared to -4% desktop spending growth).