Global ad-spending is going way up.
Google and Facebook are not suffering from the push back from big publishers. Vincent Letang, executive VP of global market intelligence for Magna told the Wall Street Journal that they originally projected a 5.2% growth in global ad revenue, but now they’re saying it could jump as high as 6.4% (to $551 billion) this year. Turns out, small business are taking the lead on ad spend.
Highlights:
- Digital spend alone accounts for half of the year’s growth.
- In Magna’s last global forecast, they predicted digital growth to be at about 13%. In 2018, Google and Facebook have collectively grown their revenue 31%.
- Growth from small and local businesses was a lot larger than anticipated, after bigger brands pulled away for reasons such as brand safety and performance issues.
- Magna also sees a small amount of growth in TV ad spend in the U.S., approximately 0.2% to $43.5 billion this year.
- With the Olympics, World Cup and mid-term elections, TV ad spend is not going away any time soon, and actually looks to be evolving.
Go Deeper:
- Magna Sees Improvement in TV Ad Expenditures via Broadcasting Cable
- Google, Facebook Propel Jump in Global Ad-Spending Forecast via The Wall Street Journal
- Global advertising spending from 2010 to 2018 via Statista
- eMarketer Releases New Global Media Ad Spending Estimates via eMarketer
Lauren is the Editor-in-Chief of Digital Insights Journal, as well as Editor-in-Chief of Morethanglam.com. She works as a Manager of Digital Strategy and Planning for 301 Digital Media, all while having an unhealthy obsession with potato chips, good wine, and Drake.
