Pandemic to cost media owners $42 billion in 2020
Total advertising revenue for media owners will shrink 7.2% for the year, before recovering +6.1% in 2021, according to the latest Magna forecast.
A just released Magna Advertising Forecast from IPG Mediabrands predicts 2020 adspend will drop 9.8% in EMEA, 8.5% in APAC, 4.4% in North America and 9.9% in Latin America—adding up to a global 7% drop equal to US$42 billion in lost revenue for media owners.
In dollar terms, spending will drop from from $582 billion last year to $540 billion. A 16% decline in linear ad sales (linear TV, print, linear radio, OOH and cinema), to $238 billion, will be mitigated by a 1% rise in digital spending, to $302 billion, the forecast said.
Among the worst-hit markets will be Japan and Spain (both down 14%), France (down 13%) and Italy (down 15%). Markets escaping with less damage include India (rising 2%), China (down 6%) and the US (down just 4%, thanks to anticipated election spending).