Magna, a big media buyer, has issued a more bullish forecast for advertising revenue in 2021.
National TV revenue is now expected to rebound 3.4% in 2021, (excluding seasonal events like the elections), compared to an earlier 3.3% forecast by Magna. Magna said national TV revenue fell 11.6% during the pandemic year of 2020.
Local TV is seen falling 2.5%, again excluding 2020’s record political ad spending, but that’s still better than the previous forecast of a 3.7% drop. Last year, local ad revenue plunged 18.7%.
Digital video is expected to be a big winner, climbing 14.1%, even more than 11.7% rise in Magna’s prior forecast.
Cross-platform editorial media ad sales (linear+digital) will grow by 4% in 2021 (excluding cyclical), with television (including broadcast and cable TV plus long-form AVOD) up 4% and audio (including broadcast radio, streaming and podcasting) up 5%.
Magna noted that the ad market recovered faster than it did during the 2008 recession.
Overall Magna the U.S. ad market growing 8.6%, excluding cyclical events. It’s earlier forecast called for a 6.4% gain to $240 billion. Last year, ad revenue was down 1.6% (up 0.6% if you include presidential year election spending).
“Improving business conditions will fuel marketing expenditures and allow most industry verticals to grow advertising spending again. The strongest ad spend growth rates will come from travel, automotive, drinks and movies, following heavy ad budget cuts in 2020,” Magna said.
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