MAGNA’s update to its Global Ad Forecast is predicting a 4.6% growth in media advertising revenues this year, reaching $842 billion (up from $805 billion in 2022). While that forecast is slightly below their December 2022 numbers of 4.8% growth, MAGNA is highlighting “stronger-than-expected growth in some markets (China, Spain), industry verticals (Retail) and media types (Retail, Social).”
That growth mitigates, as MAGNA puts it, “the deterioration of economic conditions and marketing spending in most Western markets.”
U.S. Ad Market (Source: MAGNA Global Ad Forecasts, June 2023)
MAGNA says these types of business climate uncertainties usually expose traditional media companies and formats when “brands are tempted to reduce marketing budgets or prioritize performance-based digital ad formats over high-funnel branding channels.” Accordingly, the advertising revenues across traditional categories is forecast to shrink to $264 billion (down 3%).
“Digital pure-play advertising sales will grow by +8.5% to reach $577 billion dollars,” MAGNA says, “i.e., 69% of total ad sales, driven by organic growth factors (ecommerce, retail media, media consumption shifts, stabilization in the data landscape).”
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