MAGNA REPORT: THE ASIA PACIFIC ADVERTISING ECONOMY WILL GROW BY +8% THIS YEAR
The Asia Pacific advertising economy will grow by +8% this year, following the 2021 rebound (+18%) says Magna Global Advertising Forecast for June.
Globally, media owners’ advertising revenues will grow by +9.2% this year to nearly $828 billion i.e. 32% above the pre-COVID level of 2019. MAGNA was always expecting the global advertising market to slow down significantly in 2022 following the unprecedented levels of growth observed in 2021 (Global +23%, U.S. +26%) caused by a once-in-a-lifetime “planetary alignment” of factors: the V-shaped economic recovery and the marketing consequences of post-COVID lifestyles.
Still, in its December 2021 update, MAGNA was expecting +12% for global, all-media advertising revenues in 2022. The reduction of our forecast from +12% to +9% is due to two main headwinds: a global economic slowdown since 2Q (full-year real GDP growth +3.6% according to IMF compared to +4.9% six months ago), and the mounting restrictions to data-driven targeting affecting digital advertising sales (e.g. the impact Apple iOS changes have had on display and social ad formats).
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