MAGNA’s Global Ad Forecast predicts that media owners advertising revenues will grow by over 9% in 2022 to $816 billion. The U.S. ad market will grow above average to $326 billion (+11%) as it is insulated from the economic consequences of the Ukraine war and is boosted by record political advertising ($7bn this year). China is the second largest ad market with 15% of global advertising revenues and will grow below average (+8%) due to endemic difficulties (stricter regulatory environment for digital media, severe COVID lockdowns). Among other top 15 advertising markets, the strongest growth will come from India (+15%) and South Korea (+11%), while Germany (+6%) and Italy (+3%) will suffer the most from the post-Ukraine economic environment.
Vincent Létang, EVP, Global Market Research at MAGNA and author of the report, said:
“Most of the headwinds facing the advertising market this year were expected: economic landing following a red hot 2021, continued supply issues generating inflation, and mounting privacy restrictions slowing down the growth of digital ad formats. On top of that, the war in Ukraine now exacerbates inflation and economic uncertainty. Nevertheless, MAGNA believes full-year advertising revenues will grow again in 2022 at a healthy rate, helped by a strong start to the year, on top of organic and cyclical drivers.
Organic growth factors (continued and broad-based ecommerce spending, digital marketing adoption), strong cyclical drivers (record political spending in the U.S., Winter Olympics, and FIFA World Cup), and the strength of emerging or recovering industry verticals (Travel, Entertainment, Betting, Technology) will generate enough marketing demand to offset headwinds and keep the advertising economy growing in full-year 2022.”