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Advertising Industry: Difference between revisions
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* '''In the first quarter of 2024, the leading global digital vendors reported the strongest growth rates in more than two years.''' Based on MAGNA’s analysis of financial report, global Search ad sales grew by +16% year-over-year, pure-play video by +21% and Social Media by +28% year-over-year. Quarterly growth rates are bound to slow down as comps will gradually get tougher, but MAGNA anticipates double-digit growth for all key digital formats and vendors this year. | * '''In the first quarter of 2024, the leading global digital vendors reported the strongest growth rates in more than two years.''' Based on MAGNA’s analysis of financial report, global Search ad sales grew by +16% year-over-year, pure-play video by +21% and Social Media by +28% year-over-year. Quarterly growth rates are bound to slow down as comps will gradually get tougher, but MAGNA anticipates double-digit growth for all key digital formats and vendors this year. | ||
* Full-year 2023, Google, Meta, and Amazon organic ad revenues increased by +6%, +16% and +24% respectively. '''The big three now attract a combined 60% of total advertising revenues outside China''' ($417 billion out of $698 billion), up from 57% in 2021-2022. Including China – where they don’t operate – they control 49% of global ad sales. | * Full-year 2023, Google, Meta, and Amazon organic ad revenues increased by +6%, +16% and +24% respectively. '''The big three now attract a combined 60% of total advertising revenues outside China''' ($417 billion out of $698 billion), up from 57% in 2021-2022. Including China – where they don’t operate – they control 49% of global ad sales. | ||
* Media owners advertising revenues are forecast to reach an all-time high of $374 billion this year, growing +10.7% over 2023. This is 1.5 percentage points above our previous full-year forecast (+9.2% in our March 2024 update), following a stronger-than-expected start of the year (+12% in the first quarter) and an improvement in the macro-economic outlook – with the latest GDP growth forecasts raised to a robust +2.5%. The macro-economic factor offsets slightly lower cyclical expectations, as our political advertising forecast is reduced following by weaker-than-expected fundraising in the first few months of the year. We still expect the 2024 election campaigns to generate $9 billion dollars of incremental advertising revenues for US media owners this year, an increase of +10% vs 2020. | * US Media owners advertising revenues are forecast to reach an all-time high of $374 billion this year, growing +10.7% over 2023. This is 1.5 percentage points above our previous full-year forecast (+9.2% in our March 2024 update), following a stronger-than-expected start of the year (+12% in the first quarter) and an improvement in the macro-economic outlook – with the latest GDP growth forecasts raised to a robust +2.5%. The macro-economic factor offsets slightly lower cyclical expectations, as our political advertising forecast is reduced following by weaker-than-expected fundraising in the first few months of the year. We still expect the 2024 election campaigns to generate $9 billion dollars of incremental advertising revenues for US media owners this year, an increase of +10% vs 2020. | ||
* The US remains the largest and most intense ad market in the world with advertisers spending $1,100 per consumer in 2024; it’s 8 times more than the global average ($160), ten times more than China ($110) and a hundred times more than India ($10).<br /> | * The US remains the largest and most intense ad market in the world with advertisers spending $1,100 per consumer in 2024; it’s 8 times more than the global average ($160), ten times more than China ($110) and a hundred times more than India ($10).<br /> | ||