Mediabrands’ Magna predicts local ad market will grow by 11% in 2021
Mediabrands’ media research and intelligence unit, Magna, has predicted the Australian advertising market will grow by 11% in 2021 to $17.5 billion, with the forecast indicating 17% growth for linear and 9% for digital.
The findings follow those from competitor media agency Zenith, which predicted 8% growth.
The local market fell by 6.2% to $15.7 billion, Magna said, with major formats experiencing significant declines, including TV (down 16%), radio (-27%), print (-32%), out of home (-38%), and cinema (-67%). Linear formats declined by 25% – a third of total advertiser budgets – while digital ad sales were up 6%, and now represent 68% of total ad budgets, according to the business.
This year, 18% of budget was directed at TV. The technology, personal care, and pharmaceutical categories continued to spend, while budgets for the travel, hospitality, and automotive sectors declined.
Magna suggested the market will recover in 2021 though, climbing to 11.3% growth and surpassing 2019’s high thanks to the strengths of digital and the revival of the linear market. Spending levels in Q4 support the prediction, according to Magna, with general manager of investment Nick Durrant noting that coming up with a forecast was especially difficult this year.
Durrant
“2021 is a particularly difficult year to forecast, with the delta between potential outcomes perhaps having never been greater,” he said.
“On the whole we are optimistic about the potential going in to 2021 however we are certainly prepared for less fortunate developments. It seems the underlying economic fundamentals are lining up nicely for a consumer-led recovery next year. Lockdowns, tax cuts and job keeper have put money in people’s pockets and as the future looks brighter with little community transmission and vaccines rolling out, we see people more prepared to spend it.”
Across the Asia-Pacific region, Magna forecasted an 11% jump to $193 billion, again above 2019’s levels, and the highest growth prediction internationally. North America is expected to grow by 4%, Europe, the Middle East, and Africa by 8%, and Latin America by 9%.
And globally, the prediction is a 7.6% increase to $612 billion, an increase of 1.5 percentage points compared with the business’ previous forecast of 6.1% in June.
Got a tip?
Brittney Rigby was Mumbrella's deputy managing editor - news and analysis. She left Mumbrella in April 2021.
Linkedin