Recent Magna findings indicate that worldwide ad spending will soon reach $657 billion through a 14% increase. As a result, the US will see the strongest growth rate ever recorded in the last four decades.
The region is projected to receive a 15% overall market growth to $259 billion. General national TV ad sales are expected to grow by 5% to $38 billion in 2021, with figures expected to skyrocket once the Tokyo Olympics come rolling around. The predicted global ad gain of $78 billion in 2021 follows a decline of 2.5 percent in 2020 and is expected to soon increase by 7%. “The U.S. TV market remains relatively fragmented following the merger of Warner and Discovery: The top three TV ad vendors (currently NBC, ViacomCBS and Warner/Discovery) will control just 60% of the U.S. TV advertising market, compared to 90%+ for the top three broadcasters in most other advanced markets," Magna said.
Digital ad sales in the U.S. will be up 24% to $179 billion, representing nearly 70% of total ad sales, and non-political linear sales will be up 4%. “Marketing activity and advertising spending will be fueled by strong consumption, a fast-recovering job market, the reopening of many businesses (restaurants, theaters, amusement parks…) and the return of normal events and sports schedules, plus the Olympics,” Magna said.
For next year, the researcher expects the U.S. ad market to grow 8% to $280 billion, 2 points higher than March's predictions. On a global basis, Magna expects advertising spending to grow following a 2.5% decline in 2020. With traditional media owners still contributing a majority of ad revenue, digital media players must undergo a consolidation to increase their presence in the ad market further.“Traditional media companies have no choice but to grow in scale, to compete with digital media giants, and invest in cross-platform advertising solutions,” the source revealed.