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Advertising Industry: Difference between revisions
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==== December 2023 ==== | ==== December 2023 ==== | ||
[[File:Screenshot 2024-01-03 162449.png|center|thumb|722x722px|https://magnaglobal.com/digital-advertising-reaccelerated-in-2023-major-events-will-fuel-traditional-media-in-2024/]] | |||
MAGNA’s “Global Ad Forecast” predicts that global media owners '''net advertising revenues (NAR) will reach $853 billion this year, +5.5%''' above the 2022 level, and will grow by +7.2% in 2024. | |||
* Advertising spending accelerated and grew by +6.3% yoy in the second half of 2023 following a weaker first half (+4.7%) to average +5.5 growth full year. | |||
* '''Digital Pure-Play media owners (DPP) ad revenue g'''rew by +10.5% to $587bn (69% of total ad sales). DPP ad sales are driven by organic growth factors incl. the rise of ecommerce, retail media | |||
* The US market grew +3.6% to $338 billion this year (National TV -6%, Local TV -22%, Audio -4%, Publishing -7%, OOH +2%, Search +10%, Social +14%). Non-cyclical ad revenue is up +5.4% in 2023 and will accelerate to +5.9% in 2024 (+8.4% including cyclical ad spend – including almost $10 billion in political spending). | |||
* In 2024, economic stabilization, lower inflation, digital innovation, and the return of major cyclical events (elections, international sports events) will drive ad spend +7.2% to $914 billion, +8.4% in the US. TMO ad revenues will recover by +2.2% while digital pure players ad sales will increase by +9.4%. | |||
* After stagnating for several quarters, the global advertising sales of Google, Meta and Alibaba re-accelerated since 2Q23 to reach a year-to-date 1Q-3Q growth of +4%, +13% and +5% respectively. | |||
* These three media owners account for a combined 49% of global advertising revenues. Outside China, the top three vendors are Google, Meta, and Amazon, capturing 80% to 90% of digital ad spend and 56% of ''total'' ad spend (the market share being lower for national consumer brands higher for small, local, direct advertisers). | |||
==== September 2023 ==== | ==== September 2023 ==== | ||