Advertising spending grew by 32% in the first half of 2021

Boosted by economic recovery, advertising spending grew by +32% year-over-year in the first half of 2021 to reach $130 billion, according to new data from Magna, which also revealed that all major industry verticals grew ad spending in the first half, with automotive, finance, restaurants and retail showing the largest growth versus 2020 (+50% or more).

As a result, the advertising revenues of traditional media owners (including long-form video, audio, publishing, OOH) grew by +11% year-over-year, while pure-play digital ad formats (search, social, short-form video, digital audio) expanded by +49%. Cross-platform video advertising format sales grew by +20%, while audio ad formats increased +29%.

Driven by continued economic strength, Olympic spend, and recovery from some lagging verticals in the second half, full-year ad spend will reach $278 billion this year (+23% vs 2020). At the end of 2021, Magna’s “Covid Recovery Index” for ad spending will reach 124 overall (24% above pre-Covid levels): index 91 for traditional media owners, index 158 for digital pure players.

A return to normal business conditions for all verticals, a robust macro-economic outlook, and the mid-term election boost will fuel double-digit growth again in 2022: +12%, to reach the $300 billion mark for the first time.

“The unprecedented growth in advertising spending in the first half (+32%) was more than low comps due to the Covid lockdown and recession last year. It was caused by a unique combination of national brands reconnecting with consumers and competing for a limited amount of traditional media inventory, while the lasting changes of Covid on lifestyles and marketing methods continue to fuel huge digital advertising spending from both big brands and small businesses. These ongoing organic growth engines, combined with Olympic budgets and the mid-term election spending, will continue to generate double-digit spending growth in the second half and into 2022,”  said Vincent Letang, EVP of Global Market Intelligence at Magna.