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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 === | ||
==== September 2023 ==== | |||
'''''Focused on US only''''' | |||
'''Total advertising spending re-accelerated in the second quarter of 2023. Sales were up +4.4% year-over-year, following two quarters of stagnation'''.However, only pure-play digital media vendors (Search, Social, Video) really benefited (+8.7% in 2Q23), while traditional media companies continued to struggle (-4.1% in 2Q23).The recovery in ad spend in 2Q23 was caused by a general improvement in the economy, and easier yoy comps<ref>https://magnaglobal.com/us-ad-forecast-fall-2023/</ref> | |||
[[File:Screenshot 2023-09-25 104318.png|center|thumb|765x765px|https://magnaglobal.com/us-ad-forecast-fall-2023/]] | |||
* As the US economy and advertising spending were both stronger than expected so far this year, and digital media is finally recovering from its 2022 woes, '''MAGNA raises its full-year ad revenue growth forecast to +5.2% for 2023 to reach $337 billion''' | |||
* With the economic outlook improving and yoy comps becoming even easier, MAGNA maintains its growth forecast for the second half of the year. '''Total ad spend will grow by +7% to +8% in 3Q23 and 4Q23 (compared to +2.9% in first half) to bring full year growth to +5.2% (excluding cyclical), up from +4.2% in our previous update (June 2023).''' | |||
* Around the average advertising spending growth of +4.4% in 2Q23, MAGNA observed a strong dynamic from Travel, Pharma and Retail brands, and – more surprisingly – CPG (food, drinks, personal care). The slowdown of inflation in recent months may explain this recovery in CPG brand business and marketing spending, after a difficult year 2022 when high inflation hurt the sales of premium brands. | |||
* Looking at individual media types, digital media formats will outperform again in the next 18 months, growing by high-single digits or low double-digits. Social media formats and short-form digital video formats are finally recovering from the headwinds and disruptions that hurt ad sales in 2022, brought on by the modifications to privacy settings in the Apple environment and the rapid rise of short vertical video snacking. | |||
==== June 2023 ==== | ==== June 2023 ==== | ||