Magna predicts a decline of 4.6 percent in 2020 to $ 213 billion, with a 4 percent gain recorded in 2021.
The US ad market will decline “by 2 percent in the second half of the year as the economy reopens, consumption resumes and political ads pile up”, to hit a record, according to Magna Research arm of the giant Interpublic Group.
The company on Wednesday predicted it would drop 4.6 percent in full-year advertising to $ 213 billion.
The report stated, “In 2021, Magna expects ad sales, which could outpace sales after profit of 4.0 percent (excluding 5.4 cyclical events).” “However, with a total of $ 222 billion, the US advertising market will still be slightly smaller than about $ 224 billion in 2019.”
The firm forecasts next year’s rebound to “improve consumption and mobility and return to normal schedule schedules (new shows, home games, Olympics).” And it expects seven of the top 10 industries to “regain advertising budgets in 2021, but the automotive and retail struggles will continue.”
Magna said first-half 2020 ad sales declined 7.2 percent “as flexibility in digital media ad sales (+5.7 percent) led to a steep decline in linear media (-23.1 percent),” which “marked a historic decline. Seen. ”
Raising its 2020 election cycle forecast, the firm expects political advertising spending now to be $ 5.1 billion, a 32 percent increase over 2016 and an all-time high. “Fundraising and advertising spending turned out to be stronger than expected in the first half despite the COVID slowdown,” Magna explained. “Record political advertising spending will reduce local TV losses and pump close to a billion dollars into digital media for the first time in 2016.”
A Wall Street analyst also recently argued that the election season was on track to bring record political advertising spending, with major broadcast TV station groups such as Nexstar, Gray and Tegna among the major beneficiaries.
“The COVID crisis has accelerated the general end of the economic cycle and brought the worst recession ever,” said Vincent Letang of Magna, executive officer of Global Market Intelligence. “The sheer size of digital advertising in 2020 (about 55 percent of the US advertising market) and its resilience in this economic environment forecast relatively modest declines for the entire year, despite the severity of the economic slowdown, compared to double.” The decline in digit was 2008–2009 (12 percent) when digital media was still nascent. ”
Added Letang: “For linear media, however, 2020 remains brutal, but Magna is confident that ad revenue will stabilize and recover in 2021.”
US 2020 17 percent decline in advertising spending, except political, epidemic epidemic