MAGNA reveals that the global advertising market place shrank by -4.4% to $569 billion amidst the COVID-induced recession, but some markets (US, China) proved more resilient than initially feared, thanks to the scale and resilience of digital media formats (+8%).
TEN KEY FINDINGS
1. According to MAGNA’s latest report, media owners’ linear advertising revenues decreased by an estimated -18% to $233 billion globally, amidst global economic recession, in line with MAGNA’s spring forecasts (-16%).
2. Digital advertising sales slowed down but continued to grow through the COVID-19 crisis: +8% to reach $336 billion (58% of total advertising transactions).
3. Total global advertising revenues (linear + digital) shrank by $25 billion (-4.2%), down to $569 billion a milder decline than expected in June (-7.2%).
4. Travel, automotive and restaurants made the heaviest advertising budget cuts while CPG/FMCG, finance and technology remained stable overall.
5. Sixty-six of the 70 markets analyzed by MAGNA shrank this year. The world’s two largest markets, US (-1.3%) and China (+0.2%), were among the most resilient, while top ten markets declined between -4% and -8%.
6. The Latin America region suffered the most (-11.3%), followed by EMEA (-6.4%) and APAC (-4.9%).
7. Looking at 2021, COVID-19 vaccination, economic recovery and delayed cyclical events will fuel a global rebound for marketing and advertising activity: +7.6% to $612 billion (linear: +3.5%, digital +10.4%, US +4.1%).
8. Despite economic recovery, global linear advertising spend will remain $42 billion smaller (15% smaller) than the pre-COVID-19 level of 2019.
9. Asia Pacific has been less affected than other regions by the COVID-19 pandemic and economic recession. This is a combination of strong economic resilience in China (GDP +1.9%), offsetting weaker performance in Japan (-5.3%) and India (-10.3%).
10. Record levels of political advertising spending brought $6.1 billion in incremental advertising sales and generated two percentage points of extra market growth that benefitted local TV ($3.6 billion) and, for the first time, digital media ($1.5 billion).
For detailed country breakdowns in the Asia Pacific region – including Australia – download the attached pdf.