Global advertising spending is expected to surge this year

Global advertising spending is expected to surge this year. As the world economy recovers from the pandemic, along with the summer sports and consumption peak season, it is expected to surge 14%, a record high.

Close attention from Magna, a research organization under IPG Mediabrands, estimates that marketers’ global spending will increase by US$78 billion to US$657.0 billion, mainly driven by the booming digital advertising market.

Vincent Létang, the research institute responsible for global forecasting, said that this is “magna’s strongest annual advertising growth in history”, far exceeding Previous forecast From major media sales agencies.

It is expected that positive trends will appear in all major markets. plastic products, Omnicom and IPG, as well as traditional media owners.

But Magna expects that most of the new spending will be spent on digital advertising, with Google and Facebook being the main players.

The 15% growth in the US market is expected to be the highest in four years, an increase of 9 percentage points from Magna’s previous estimate, especially driven by the rebound in consumption and the return of major sports events.

Advertising expenditures, especially those of traditional media, were initially hit hard by the pandemic blockade. But the rapid shift to online marketing has promoted the development of global platforms such as Google, Facebook, and Alibaba, limiting the overall decline in global advertising spending in 2020 to 2.5%.

Magna predicts that the upsurge of e-commerce and online marketing will continue into this year, with digital advertising formats accounting for most of the sales recovery. Digital advertising is expected to grow by 20%, accounting for about 64% of total advertising sales in 2021.

In contrast, traditional advertising media such as print, magazines, outdoor billboards and radio are expected to resume growth, but the growth rate is only 3%.

Magna predicts that the return of beverage and car advertising and summer sports events, including the 2000 European Football Championship and the Japanese Olympics, will help traditional TV, and the price increase will compensate for the decline in audience numbers. However, even in this recovery year, newspaper advertising sales are still expected to fall by 4%.

It is expected that each of the 70 global advertising markets monitored by Magna will increase in marketing spending, with the UK leading the rebound with 16.8%, China at 16%, and Brazil at 15.2%.