Magna’s latest forecast paints a sunnier outlook for the ad industry, which it says has recovered faster than expected from the effects of the coronavirus pandemic. Magna chalks up the improved economic outlook to the new stimulus package, the decline of COVID-19 and the return of live sports. The growth rate would be an even more impressive 8.6% when neutralizing for the impact of cyclical ad spending on election ads and the Olympics in both years.
While the rising tide should lift all channels and formats, social media, digital video, search and out-of-home could see double-digit growth, compared to low to mid-single-digit growth for national TV and radio. Digital ad sales are expected to grow by 13% to $161 billion, surpassing two-thirds of total ad sales for the first time.
