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%.
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.
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. ■
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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