Magna Forecasts Stronger Outlook for Ad Industry in 2022 with FIFA World Cup, US ElectionPUBLISH DATE: 20 July 2022
Magna, the leading global media investment and intelligence company has referred to some ‘cynical factors’ that are going to stimulate the ad industry. The US election is definitely one of the periodic events which is expected to generate $8 billion of political revenue that will go into local television. About 90% of [US political ads in 2022] will be incremental for the ad industry.
Aside from the US political event, international sports festivities are also key events which are going to contribute to an increase in global ad revenue. Beijing Winter Olympics, which took place last winter, and the Qatar World Cup 2022, are such great examples. The World Cup 2022 in particular will have a strong impact on the global advertising industry. One of the key reasons is that it is going to take place in November, that is right after holidays, that is when marketing campaigns abound and ad rates soar to new heights.
With the reports shared by Magna, it has been observed that these organic and cyclical factors have already translated to a strong ad market in the first quarter of 2022, in which the US, for example, saw a 14% increase in ad revenue.
Digital advertising sales will grow by 13% to reach $534 billion, 65% of the total ad sales, in the year 2022. Amongst the various digital formats, digital video will witness the most growth of 16%, while search will occupy the biggest market share of $265 billion in the upcoming quarter. Social advertising will see a growth of mere 11%, which is unexpectedly lower than both video and search.
Advertising revenue for traditional media like TV, radio, out-of-home, print, and cinema will see a growth of 4% to $282 billion. As the global pandemic situation will decrease, out-of-home ad revenue will see a 10% increase. It will be interesting to note that much of such growth of traditional media will come from ads generated by cyclical events which would otherwise only grow by 2%.