Insight: Advertising market grows despite economic uncertainty, according to MAGNA

NEW YORK, USA — Global media investment and intelligence company MAGNA has released the latest version of its “Global Ad Forecast.” In its summer update, it predicted that media owners’ advertising revenues will grow by 9% in 2022 to $816 billion. They will grow by 6% in 2023.

Some key findings of the study also include:

  • After a strong start to the year, advertising spending is slowing down amidst economic uncertainty, but organic and cyclical growth factors will support marketing activity and advertising demand.
  • Digital advertising sales will grow by +13% this year to reach 65% of total ad sales. Digital Video will be the fastest-growing ad format (+16%) followed by Search (+15%), and Social (+11%).
  • The advertising revenues of traditional media companies will grow in most media: Television and Audio (both +4%), Out-of-Home (+10%), while Print advertising will decline slightly (-3%).
  • Traditional media companies are deriving a growing percentage of advertising revenues from digital formats (AVOD, CTV, audio streaming, podcasting, etc). In some markets these are already contributing 10% of ad revenues in TV, 20% in audio media, and 50% in publishing, stabilizing revenues for publishers.
  • Television advertising suffers from rapid erosion of linear viewing, offset by growing AVOD revenues, strong pricing in the first half, and extra spending around cyclical events (mid-terms, Olympics, FIFA World Cup).
  • APAC advertising revenues will increase by +7% to $273bn, 35% above the pre-COVID spending level, driven by digital advertising growth (+12%).
  • The second-largest ad market, China (15% of global advertising revenues), will grow below average (+8%) due to endemic difficulties (stricter regulatory environment for digital media, severe COVID lockdowns).
  • Among other top 15 advertising markets, the strongest growth will come from India (+15%) and South Korea (+11%) while Germany (+6%) and Italy (+3%) will suffer the most from the post-Ukraine economic environment.

Vincent Létang, EVP, Global Market Research at MAGNA and author of the report, said, “Most of the headwinds facing the advertising market this year were expected: economic landing following a red hot 2021, continued supply issues generating inflation, and mounting privacy restrictions slowing down the growth of digital ad formats. On top of that, the war In Ukraine now exacerbates inflation and economic uncertainty. Nevertheless, MAGNA believes full-year advertising revenues will grow again in 2022, helped by a strong start to the year, on top of organic and cyclical drivers.


Organic growth factors (continued and broad-based e-commerce spending, digital marketing adoption), strong cyclical drivers (record political spending in the U.S., Winter Olympics, and FIFA World Cup), and the strength of emerging or recovering industry verticals (Travel, Entertainment, Betting, Technology) will generate enough marketing demand to offset headwinds and keep the advertising economy growing in full-year 2022.”

Partner with adobo Magazine

Related Articles

Leave a Reply

Back to top button