Magna forecasts global ad market to continue growth as retail and social media accelerate

IPG’s Magna unit expects the global advertising market to continue growing in 2023, boosted by retail media and social media bouncing back.

Magna’s June update to the global ad forecast is estimating revenues of media owners advertising revenues to reach $842 billion this year, up 4.6% from $805 billion in 2022. While ad spending slowed in the first quarter due to economic uncertainty and lack of cyclical drivers, e-commerce and retail media are contributing to more marketing dollars. Retail, auto, and travel are also adding to the growth.

Vincent Létang, EVP of global market research for Magna, noted that traditional media formats will struggle this year, and uncertainties will continue to impact the industry, including the TV writer’s strike.

“Some of the uncertainties hovering above the media industry and the economy will fade away in the second half, e.g. the debt ceiling negotiation, and the little financial panic around March,” Létang said. “In a nutshell, we don’t need to assume strong economic recovery to predict that ad market growth rates will recover somewhat in the second half – certainly digital formats will.”

But in 2024, there should be some economic stabilization and the return of the U.S. presidential elections, Paris Olympics, and Euro Football championship that will “re-accelerate ad spend,” the report noted.


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