The digital advertising recovery, combined with a slightly better economic outlook, led MAGNA to raise its market growth forecast for 2023 and 2024.
Year-over-year comps and a general improvement in the economy led to a recovery in advertising spending in 2Q23. Real GDP grew by +2.4% in the second quarter, much better than the +1% expected in May. Inflation continued to recede, while consumer confidence gradually improved; unemployment remains under 4%.
With the economic outlook improving, 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 to bring full year growth to +5.2%, up from +4.2% in the previous update.