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Magna Sees U.S. Long-Form Video Ad Revenue Rising 4% in 2022

Magna

Media buyer Magna Global forecasts that total U.S long-form video ad revenue will rise 7% in 2022 after a 6% gain in 2021 to $65.6 billion.

For long-form video in 2022, Magna sees the biggest gains coming in AVOD, OTT and CTV revenue at 29%. Growth in 2021 was 26% in 2021 and accounted for a 2% share of the overall ad spending.

National broadcast and cable are expected to decline 5% in 2022 with local TV growing 13%, including political and Olympic spending. Without those cyclical events, local video revenue is seen declining 3%.

 Also: Magna Sees U.S. Long-Form Video Ad Revenue Rising 4% in 2022 

Short form video is seen rising 27% in 2022 after a 47% increase to $16.3 billion in 2021.

All U.S. media ad revenues are expected to be up 13%, with digital up 17%. That follows a 24% rebound to $284.3 billion in 2021, according to Magna.

 Also: U.S. TV Ad Spending To Rise By 4% in 2022, Zenith Forecasts

Global ad revenues are expected to grow 12% in 2022, with TV up 3.4% and digital up 16%. 

“The global ad market recovered above and beyond the economic recovery in 2021. Mature linear ad formats recovered to 90% of the pre-COVID level, just as the economy did. Digital ad formats, by contrast, grew much faster than expected, driven by multiple organic growth factors, e-commerce boom being the most significant,” said Vincent Létang, executive VP, global market research at Magna. 

“Traditional, brand- and privacy-safe media remain crucial to building consumer brands, as shown by the strong demand boosting TV costs in 2021, but marketers are increasingly diversifying into digital formats to reach hard-to-reach audiences, improve ROI  and connect more seamlessly to e-commerce. This once-in-a-lifetime planet alignment of growth factors led to the unprecedented market  growth we experienced in 2021,” Létang said. ■