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Advertising Industry: Difference between revisions
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Do advertising agencies like Magna and Zenith have a positive bias? | Do advertising agencies like Magna and Zenith have a positive bias? | ||
=== Magna Forecast === | === Magna Forecast === | ||
==== December 2024 ==== | |||
'''Total Market Overview''' | |||
* '''Global Ad Revenue:''' In 2024, media owners' ad revenues reached '''$933 billion''', growing by '''+10.3%''', marking the strongest growth in 25 years (excluding post-COVID recovery in 2021).<ref>https://magnaglobal.com/ad-forecast-media-innovation-to-propel-the-global-ad-market/</ref> | |||
* '''Digital Pure Players (DPP):''' Ad sales increased by '''+13%''' to $659 billion, driven by '''Search/Commerce (+12%)''', '''Short-Form Video (+12%)''', and '''Social Media (+18%)'''. | |||
* '''Traditional Media Owners (TMO):''' Revenues grew '''+4%''' to $274 billion, the best performance since 2010, driven by cyclical events (e.g., US elections, Summer Olympics) and '''+12% growth in non-linear ad sales (e.g., ad-supported streaming)'''. | |||
* '''Regional Performance:''' Dynamic markets included the US and France (+12%), India and the UK (+11%), and Brazil (+14%). Growth was slower in China (+7%) and Germany (+6%). | |||
* '''Key Verticals:''' Automotive, Finance, and CPG/FMCG were among the fastest-growing industries, while Travel showed signs of slowing. | |||
'''Digital Advertising (DPP)''' | |||
* '''Drivers:''' | |||
** Growth fueled by ecommerce competition (e.g., Temu and Shein targeting Europe). | |||
** The rise of retail media networks, which now account for $144 billion. | |||
** Improved monetization of short-form vertical videos on social platforms like Instagram and YouTube. | |||
** AI-powered algorithms enhancing ad placement and effectiveness. | |||
* '''2025 Forecast:''' DPP ad sales are expected to grow by '''+9.4%''' to reach '''$721 billion''', with strong contributions from '''Retail Search (+13%)''' and '''Social Media (+13%)''' | |||
'''Market Leaders''' | |||
* '''The Big Three (Google, Meta, Amazon):''' | |||
** Combined ad revenues grew '''+11% (Google)''', '''+22% (Meta)''', and '''+21% (Amazon)''', increasing their market share to '''51% globally''' and '''61% outside China'''. | |||
** Benefited from innovations like short-form video monetization and ecommerce-driven advertising. | |||
'''2025 Outlook''' | |||
* '''Global Ad Revenue:''' Forecast to grow by '''+6.1%''' to $990 billion, driven by '''DPP (+9%)''', while TMO revenues are expected to decline by '''-2%''' due to a lack of major cyclical events. | |||
* '''Key Trends:''' | |||
** Stabilization of the European economy may boost ad spending in key markets like Germany and the UK. | |||
** CPI inflation is slowing to '''+2%-3%''', enhancing consumer purchasing power and ad spending. | |||
** Organic growth drivers, including AI and ecommerce, will continue to support digital ad growth. | |||
[[File:Screenshot 2025-01-13 095407.png|center|thumb|780x780px|https://magnaglobal.com/ad-forecast-media-innovation-to-propel-the-global-ad-market/]] | |||
[[File:Screenshot 2025-01-13 095429.png|center|thumb|771x771px|https://magnaglobal.com/ad-forecast-media-innovation-to-propel-the-global-ad-market/]] | |||
==== September 2024 ==== | ==== September 2024 ==== | ||