On the 6th of December, the Mediabrands group delivered the results of the latest Magna study on global advertising market trends, conducted in 70 countries. The global ad industry currently stands at $766 billion and is set to grow to $1 trillion by 2025. The recent study predicts the highest growth rate ever recorded by the agency in 2022. These predictions are mirrored by other ad agencies, such as Group M, which predicts a historical year-on-year high with growth of 22.5%.
The recent results surpass the 14% growth rate forecasted by Magna in June 2021 and demonstrate a significant reversal of the 2.5% ad decline witnessed in 2020. This market growth has growth averages, which were on average 6% per year in the four years before the pandemic hit.
This acceleration has been driven by digital advertising formats which now account for 62% of total advertising sales worldwide. Digital ad formats such as social media, digital audio, searches and more grew by 31% to reach 146% of the pre-Covid market size. Linear ad format sales e.g. on TV, radio, print, and cinema grew by 9% to reach an equivalent of 90% of pre-Covid levels.
Regionally, Markets which rolled out swift and widespread vaccination programmes and allowed businesses to reopen in early 2021 witnessed the strongest year-on-year ad spend growth, led by the UK, Canada, and the US. The Asia-Pacific region was the worst-performing region. In addition, despite keeping its Covid cases almost at zero throughout the year, China’s growth in 2021 has been slower than other APAC markets at 16.7%, potentially as a result of the government crackdown on digital media owners throughout the year. Japan, which hosted a troubled Tokyo Olympics in July, is expected to post 15% ad revenue growth in 2021.
Overall predictions suggest a strong year for advertising spend as we emerge from the pandemic.