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Home » Research » Indian net advertising revenues recovery at 8.6% in 2021, says Magna Forecast
Indian net advertising revenues recovery at 8.6% in 2021, says Magna Forecast

By M4G Bureau - June 16, 2020

The report says that although global OOH ad sales are expected to fall by 22% with the deeper fall in transit segment, India’ net advertising revenues seem to recover in the next year

MAGNA releases its advertising forecast-June 2020 named ‘Life after Covid: Global ad market to recover in 2021 after steep downturn in 2020’. The report states that the media owners’ advertising revenues will decrease by $42 billion in 2020, from $582 billion to $540 billion, as advertising spending shrinks due to severe economic recession triggered by the Covid19. GDP is expected to contract between 5% and 12% across the world’s largest markets.

It said that the global advertising revenues will decline by an estimated 7% because of 16% decline of linear ad sales (linear TV, print, linear radio, OOH, cinema) to $238 billion. This will be mitigated by the stability of digital formats: increase of 1% to $302 billion.

OOH, the most dynamic linear media channel is affected by the dramatic decline in traffic and audience, in addition to the low demand from local and national advertisers. Global OOH ad sales are expected to decline by 22%, with the transit segment experiencing even deeper fall. Theatre closures will adversely impact cinema advertising by 40% this year, it said.

As this epidemic is global, so is the impact on the advertising market.  EMEA and Latin America will experience the worst downturn, with total advertising revenues down by 10%, with APAC marginally more resilient at 8.5%. North America may show more stability, partly due to $5 billion, which will be spent during 2020 election cycle.

 YEAR-OVER-YEAR GROWTH

2019

2020

2021

AUSTRALIA

1.0%

-8.3%

6.9%

BRAZIL

7.9%

-4.7%

4.0%

CANADA

5.5%

-5.9%

4.8%

CHINA

8.4%

-6.0%

6.8%

FRANCE

4.7%

-13.1%

7.8%

GERMANY

2.0%

-10.5%

7.8%

INDIA

10.6%

2.3%

8.6%

ITALY

0.4%

-14.5%

8.8%

JAPAN

1.6%

-14.2%

11.1%

RUSSIA

5.6%

-7.1%

6.5%

SPAIN

1.7%

-14.3%

9.1%

UNITED KINGDOM

10.1%

-8.9%

7.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET ADVERTISING REVENUES – OTHER MARKETS

Among the worst downturns predicted by MAGNA in 2020 are Japan and Spain (both 14%), France (13%) and Italy (15%), China (6%) and the US market (4%).

Vincent Letang, EVP, Global Market Intelligence, MAGNA, said, “Beyond the 2020 economic recession, Covid19 crises will have global and long-term effects on society, business models, consumption habits and marketing expenditure.”

However, the report forecasts the net advertising revenue of Indian market at 2.3% in 2020 and at 8.6% in 2021. In 2021, the global economy is expected to recover. Major sports events (Summer Olympics, UEFA Football Championship in Europe) will add to the recovery in marketing budgets and advertising spending. MAGNA predicts global ad spend to grow by 6.1% to $573 billion.

Also read: OOH worldwide market projected to grow by US$ 11.1 Billion

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