Magna global has lifted its global ad spend forecasts with the Australian market expected to grow 11.4% this year.
This follows a 5.1% fall in the 2020 pandemic year.
The forecast rate for Australia compares to the global advertising spend prediction of growth of 14% to $US657 billion in 2021, an all-time high.
Ad spend in the US is forecast to grow 15% to $US259 billion for 2021. This is below predictions by GroupM which sees 22% growth in ad revenue in the US.
Australian ad spend is now forecast by GroupM to rise 18% in 2021.
In 2022, Maga forecasts a 2.9% rise in ad spend for Australia and 7% globally.
Analysts at Magna say advertising activity is fuelled by economic recovery following COVID-19, stronger drivers to digital marketing and international sports events including the Tokyo Olympics.
Digital ad formats capture most of the growth with ad sales up +20% to $419 billion, representing 64% of total ad sales.
“As economic recovery is stronger and faster than anticipated in several of the world’s largest ad markets (US, UK and China, in particular) and consumption accelerates, brands need to reconnect with consumers,” says Vincent Létang, EVP, Global Market Research at MAGNA and author of the latest forecasts.
“At the same time, the acceleration in ecommerce and digital marketing adoption that started during COVID, continues full speed into 2021, fueling digital advertising spending from consumer brands as well as small and DTC businesses.
“This unique combination of cyclical, organic and structural drivers will lead to the strongest advertising annual growth ever monitored by MAGNA.”
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