Magna Global recently released its global ad spend forecasts, expecting that the Aussie market expected to grow by 11.4% in 2021, following a 5.1% fall in the 2020 pandemic.
The forecast for Australia is a bit below compared to the expected growth for global ad expenditure of 14% to US$657bn in 2021, which is an all-time high for the global industry.
Ad expenditure in the US is expected by Magna to grow by 15% to US$259bn for 2021. Notably this is below the forecast set by GroupM, which expects 22% in ad revenue across the US.
GroupM also expected Australian ad expenditure to go up by 18% in 2021. In contrast, Magna expects a 2.9% increase in ad expenditure for Australia and 7% across the world.
Magna’s analysts stated that the sudden upsurge in advertising activity stems from economic recovery following the issues from the COVID-19 pandemic, alongside stronger drivers to digital marketing as well as international sporting events thanks to the Tokyo Olympics.
Digital ad formats were the ones set to grow the most, with the sector set to go up by 20% to $419bn, which would account for 65% of total ad sales.
Magna Global Market Research EVP Vincent Letang stated that brands need to reconnect with customers as economic recovery is going along even stronger and faster than what a lot of experts expected, especially in key markets like the US and the UK.
Alongside that, Letang noted, the acceleration in e-commerce and digital marketing that came from COVID is continuing into 2021, with customer brands responding by bumping up their digital ad expenditure. They are expecting digital marketing to become more important in the future, and a king kong marketing agency review and its ilk are gain power.