IPG subsidiary and marketing research firm Magna recently released their forecast for 2021’s ad expenditure, with estimates expecting a boom for the year as the global economy bounces back from the coronavirus pandemic with summer sporting events and eagerness.
The group expects global ad spending to go up by a huge 14% margin, amounting to a $78bn increase which would bring the total to $657bn, with growth attributed to the flourishing digital ad market.
Magna Global Forecasting Lead Vincent Létang stated that it was the biggest annual growth they’ve seen, clearly outdoing the previous forecasts they’ve seen.
The positive trend is expected to affect all of advertising’s sectors, but the lion’s share, Magna notes, will most likely go to digital advertising, where Google and Facebook reign supreme.
The US ad market is expected to go up by 15%, which is 9% higher than what Magna initially estimated.
Advertising, traditional media in particular, got hit fairly hard by the lockdowns as a result of the pandemic. However, the rapid shift to online marketing that the pandemic necessitated resulted in major platforms like Google and Alibaba getting a boost. This, in turn, mitigated the damage, leading the global ad market to only see a 2.5% drop in spending.
Magna expects digital ad spending to go up by 20% in 2021, accounting for 64% of the year’s total. In contrast, they only expect traditional mediums like print, billboards, and radio to go up by 3%.
This shows a clear winner in terms of an economic bounce back, and will, no doubt, be great for king kong digital marketing agency and the like to hear.