Experts say the industry will stabilize in Q3, and start recovering – in Q4
COVID-19’s negative influence on advertising will stick by the end of the year; however, in 2021, it is expected to recover. Magna Global, IPG Mediabrands’ strategy arm, introduced its latest forecast about the advertising industry, reports Adweek.
According to the analytics, in 2020, the US media owners’ revenue will fall to $213 billion, which is $11 billion less than it was in 2019.
Magna Global says, however, that the American advertising market will decrease only by 4%. That’s because this year, advertisers will spend $5 billion on political ads. Political and digital advertising will mitigate the decline in linear marketing sales.
According to the company’s forecasts, digital advertising will grow 2% year-over-year, digital video – 10%, and social – 7%.
Adweek reports that most of the publishers predicted declining trends in digital advertising before. That’s because many advertisers were concerned about showing their ads next to the COVID-19 content. “That’s good news, especially for publishers, who could benefit from the changing trends in advertising,” says Sara Jerde, the article author on Adweek.
In general, experts expect the American market to stabilize in Q3, and recover in Q4.
However, analytics are still waiting for the Q2 results. According to their projections, during this period, advertising on local TV dropped by 30%, on radio by 34%, in print media – 40%.