Advertising Industry: Difference between revisions

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 === Disclaimers ===
 Do advertising agencies like Magna and Zenith have a positive bias?
+[[File:Advertising2.PNG|thumb|https://magnaglobal.com/us-ad-market-update-march-2023/]]
-=== Magna Forecast <ref>https://magnaglobal.com/traditional-media-resilient-through-economic-uncertainty-social-media-stalls-under-headwinds/</ref> ===
+=== Magna Forecast <ref>https://magnaglobal.com/us-ad-market-update-march-2023/</ref> ===
-MAGNA predicts global media owners advertising revenues will reach $833 billion in 2023, +5% growth vs. 2022 ($795bn), slowing from +7% in 2022.
+In its new 2023 scenario, MAGNA expects little or no growth in the first half (+2% in 1Q23, +4% in 2Q23) against tough quarterly comps, followed by a recovery in the second half (+6% to +7%), as the economy solidifies, and advertising comps become much easier. Overall, full-year advertising revenues will grow by +3.4% this year to reach $326 billion (incl. CE).
-The new 2023 growth forecast is 1.5 percentage point below MAGNA’s previous global forecast (published in June 2022) due to a deteriorating macroeconomic outlook. ''MAGNA’s June forecast was based on a global economic growth expected at the time to reach +3.6% in 2023 (real GDP forecast from IMF WEO April 2022) but that expectation was since cut down to +2.7% in the latest IMF update (WEO October 2022).''
+* Search and e-commerce advertising formats (Google, Amazon, retail media networks) will continue to be driven by the expansion of e-commerce to CPG and grow by +10% (slowing down from +14% in 2022) to remain the largest advertising format ($125bn in 2023)
+* Social media formats (Facebook, Instagram, Tiktok …) will re-accelerate +6% to $66bn after stalling in 2022 (+2%) due to headwinds including audience maturity and the data targeting limitations established in 2021.
-In 2023, the growth rate of the US market is expected to be below average at +4%, reaching a total of $330 billion, due to weak demand as GDP growth is predicted to be under 1% and a lack of cyclical advertising spending.
+* Cross-platform audio ad sales will stabilize at around $17 billion this year. Linear radio ad formats will drop -4%, while digital audio formats (audio streaming, podcasting) will rise +9%. Podcasting will help drive digital audio growth, and grow +16%, though this represents a slowdown compared to MAGNA’s previous forecast of +22%
-[[File:Global ad.PNG|thumb|https://magnaglobal.com/traditional-media-resilient-through-economic-uncertainty-social-media-stalls-under-headwinds/]]
-* Television ad revenues across all platforms it is projected to decrease by 4% in 2023.
-* [[wikipedia:Out-of-home_advertising|OOH media]] will complete a full global recovery in 2023 by growing by +6% to $33.5 billion.
-* Audio advertising formats expected to have flat ad sales in 2023 (+1%)
-* Publishing advertising predicts another decline of -3% for global publishing ad sales in 2023.
-* Organic growth factors will generate an additional +10% in global Search spend in 2023.
-* MAGNA anticipates social media advertising to re-accelerate only slightly in 2023 (+7%)
-* Digital Video advertising will increase by +11% in 2023 to reach $65 billion.
 === Zenith Forecast<ref>https://www.zenithmedia.com/zenith-forecasts-4-5-growth-for-2023-after-7-3-uplift-in-2022-marking-continued-healthy-growth/#:~:text=Zenith%20estimates%20that%20advertising%20on,are%20likely%20to%20follow%20suit.</ref> ===