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Technology Featured APAC

IPG Mediabrands’ media responsibility index to increase analysis to more than 150 global partners

Singapore – IPG Mediabrands and its intelligence arm MAGNA have unveiled the 4th issue of its signature Media Responsibility Index (MRI 4.0), an initiative that strives to raise industry awareness and standards around harm reduction for brands and consumers in advertising.

The media agency has beefed up its MRI 4.0 with a number of enhancements, starting from the increase in the number of its subjects from 10 social platforms to now more than 150 partners from a variety of media formats across 15 countries. Through this, the media agency said it has transformed the index to now become an actionable toolset.

Further to the changes, the new MRI 4.0 has established four new ESG-aligned priorities for partner accountability.

“We developed our first media responsibility index in 2020 to determine exact protocols of the major platforms, as people started questioning the impact of social media in their lives, from the prevalence of misinformation to hate speech and data-collection practices,” said Elijah Harris, EVP of Global Digital Partnerships & Media Responsibility at MAGNA.

The original MRI, which is a first-of-its kind, was launched in August 2020, in response to concerns about social media platforms not taking steps to acknowledge, measure and reduce their contribution to online and real-world harms.

The newly improved index further allows for teams and clients to incorporate brand and consumer safety priorities into their investment decision-making for a variety of media types, from the largest global social platforms to local broadcast media outlets.

MRI 4.0 has assessed each outlet across four priorities of partner accountability—Safety, Inclusivity, Sustainability and Data Ethics—in alignment with industry-adopted ESG (Environmental, Social and Governance) frameworks so businesses can easily extend how they are measuring their impact in these spaces to include media. Previous versions of the MRI had ranked the platforms upon Mediabrands’ 10 Media Responsibility Principles, which are now consolidated within the four priorities.

The 150+ major partners that were surveyed expand into the realms of Broadcast & Cable, Connected TV, Online Video, and Display. Across Broadcast & Cable, the traditional-first networks also span several subsidiary companies across Connected TV and Online Video properties. The findings illuminated that strict, longstanding federal regulations within Broadcast & Cable have had a trickle-down effect on their digital properties, in effect enhancing safety standards when compared to digital-first counterparts surveyed.

Harris added, “We have always believed in the need to bring the lens of media responsibility to a broader set of media types. Consumers digest content and opinions from an ever-increasing list of mediums. It only made sense that this [rigour] we’ve developed for social platforms would be translated for a more diversified mix of media partners. With each iteration, the MRI is becoming more robust and establishing itself as a mainstay in driving industry accountability and powering responsible advertising investment.”

Some of the notable findings of the latest index include how social media platforms showed continued improvement across the four priorities (averaging +3-point in overall performance). It had also been found that Safety is a standout priority for broadcast & cable, based in part on federal industry regulations forcing uniformity and 3rd party enforcement in safety standards – including children’s safety rules and advertising approvals.

Tech-proficient digital-first CTV partners are also now driving higher Data Ethics performance than their traditional-first counterparts, in part due to their origins and operating in a more tech-oriented space, versus a TV-first space.

The index also found that in a mixed marketplace for Sustainability practices, online video platforms showed strength in their ad-business emissions measurement and in setting net-zero goals.

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Marketing Featured ANZ

Lucy Formosa Morgan appointed as MD for MAGNA Australia

Sydney, Australia – IPG Mediabrands’ media intelligence and investment division MAGNA has appointed Lucy Formosa Morgan as its new managing director in Australia. The appointment took effect on 26 June, replacing previous managing director Nick Durrant.

Morgan brings more than 20 years’ international and local experience to Magna, previously holding senior management roles both agency and publisher-side, in Australia and the UK. 

Most recently, she was with NOVA Entertainment as commercial operations director. Prior to that, she was with PHD for more than decade where she joined as national managing director and chief investment officer, while also leading several of PHD’s specialist business units, driving growth year-on-year.

Speaking on her appointment, Morgan said, “MAGNA has clear opportunities to continue to evolve its investment product, taking full advantage of the ongoing dramatic shifts in consumer behaviour that we have seen over the past 2 years. I am delighted to join such a highly experienced and passionate team. Together we will continue to challenge how we execute our media with particular emphasis on digital, data and tech capabilities in the market so we can harness our creative thinking to accelerate returns for our clients.”

A passionate advocate for climate change and leading the charge for gender diversity across the Australian media industry, Morgan also mentors a number of senior women executives and is focused on increasing women in executive management roles.

Meanwhile, Mark Coad, CEO at Mediabrands Australia said he was delighted Lucy will be leading Magna’s Australian team as she is an inspiring leader with a track record of creating brilliant work that drives client success; and he was really looking forward to seeing her make an impact in the business.

“Lucy is a well experienced and highly capable executive. We have worked together in several roles over the years – so I know exactly what she will bring and the difference she will make. She is extremely highly regarded across the industry and by our media partners, and will bring all of that to bear as she takes on the leadership of Magna. She will also make a valued contribution to the overall Mediabrands business as she takes a place on our executive leadership team,” Coad said.

He added, “This role is not just about how we lead our Group’s negotiations and investment – but how we work with our media partners to execute the digital, data and tech capabilities in market…how we splice together our ability to build audiences with our media partners ability to deliver them and connect them to the brands we represent.”

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Marketing Featured ANZ

New Zealand’s ad economy expected to increase this 2022: report

New Zealand – New Zealand’s advertising economy will be increasing by 8% in 2022 to reach NZ$3.5b, according to data from Mediabrands’ MAGNA

The report found that the country’s economy will be growing by more than 2.7% on a real basis in 2022, levelling out from the rebound in 2021 with more than 5.6%. In this environment, linear advertising revenues are increasing by over 2%. The linear advertising spending this year is at 90% of its pre-COVID total.

Meanwhile, television revenues are increasing by over 2% and are expected to continue their decline at -3-5% from 2023 to 2026, while print is shrinking by -1%, however, out-of-home spending will grow over 13%, reaching about ~90% of its pre-COVID total. With this, MAGNA predicts home to surpass pre-COVID measures by 2023. 

The report also revealed that TV pricing continues to increase as demand is significantly outstripping supply. Some price-sensitive brands have started to shift away from linear TV, but not yet to a significant degree.

For digital advertising, the data shows that revenues are growing by 13% to reach NZ$2.2b, while campaigns on mobile devices are leading ad spending, which will grow by more than 17% and represents 70% of total digital budgets. By format, growth is being led by video with over 15%, search with over 15%, and social with over14%. Looking forward, digital will continue to take share compared to linear advertising formats, and by 2026 digital budgets will represent 70% of total advertising budgets.

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Marketing Featured South Asia

Sri Lanka’s ad growth by 2023 to be driven by digital formats

Sri Lanka – Despite the turmoil brought by the new COVID-19 Omicron variant as well as the economic issues the country is facing, Sri Lanka’s advertising scene is set to grow by 16% by 2023, which will be dominated by digital formats. This is according to the latest data from Mediabrands’ MAGNA.

According to the insights, Sri Lanka’s advertising market grew by over 10% in 2021. However, it is feared that this growth forecast might change in the near future amidst economic instability in the country, as well as facing a consumer price inflation crisis.

In other mediums, linear formats will also see some growth this year, though on a smaller scale. Meanwhile, television (+3%) and radio (+5%), and OOH (+13%) will see the strongest growth while print will decline slightly (-5%). 

“2023 will bring continued recovery for most linear ad formats, with the exception of print, but over the long term, we anticipate digital will continue to gain market share at the expense of linear media channels,” the report said in a statement.

As evident across APAC, digital is the backbone of growth, with all digital formats expected to see another year of double-digit growth: video by over 52%, social by over 25%, search by over 21%, and display by over 18%. In total, digital advertising revenues will reach US$131m, or a 37% market share regionally.

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Marketing Featured Southeast Asia

Linear advertising takes lion’s share of ad spend in Vietnam

Vietnam – In Vietnam, linear advertising still accounts for 62% of the country’s advertising budgets, according to data from Mediabrands’ MAGNA.

According to the report, this year’s advertising revenues in Vietnam are increasing by 5% higher than anticipated due to the pre-COVID situation, which has caused pullbacks in advertising activity since 2021.

Meanwhile, TV advertising revenues are still a huge portion of overall ad budgets in Vietnam. Even though television ad spending is decreasing by -4% it still represents 58% of the total budget.

In other mediums, print ad sales continued to decline this year by -3%, and will continue by -4% in 2023, representing just 5% of total advertiser budgets. Furthermore, spending on print will represent just 70% of the pre-COVID total in 2019 by the end of this year 2022.

Lastly, as the economy recovers from the COVID outbreak in 2021, out-of-home (OOH) expenditure is expected to increase by 20% this year.

For digital advertising, the revenue is increasing by +22% and represents 38% of total advertiser budgets. Digital spending is led by social media advertising, which will increase by +36% and represent 48% of total digital advertising budgets. By format, mobile +30%, video +15%, and search +13% are leading growth.

According to the estimate, Vietnam’s advertising revenue will bring the market to VND 32.8 trillion ($1.5 billion). On a real GDP basis, Vietnam’s economy is expected to grow by 6.0%. Worldwide, media owners’ ad income will rise by over 9.2% this year, reaching around US$828 billion, or approximately 32% above the pre-COVID level of 2019. In addition, advertising revenues in the Asia-Pacific region are expected to rise by more than 7% to US$273 billion, or 35% higher than they were before COVID, thanks to an increase of over 12% in digital advertising.

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Marketing Featured Southeast Asia

Linear advertising represent majority of ad spend in Thailand: report

Bangkok, Thailand – Linear advertising remains the majority of advertising spending in Thailand, accounting for 72% of total advertising budgets for the local market, according to data from Mediabrands’ MAGNA.

According to the report, linear advertising revenues in Thailand are growing by over 3% and represent just 81% of their pre-COVID level, attributed to the delayed recovery from the COVID crisis. This, in turn, creates a significant drag on total market growth going forward.

Meanwhile, television ad spend is stagnant and represents only 53% of total advertising spending. Television spending is still short of the pre-COVID total. Because spending will continue to erode, TV will never reach its all time high. 

In other mediums, print spending is still declining, and is falling by 17% this year and represents just 3% of budgets. There are only a few core spending industries that still deploy budgets on print: real estate, finance, autos, and consumer packaged goods (CPG). 

Lastly, out-of-home (OOH) spending is seeing a strong rebound of 20% this year as the economy recovers from the COVID outbreak in 2021.

Digital advertising spending will grow by over 13% in 2022 and represents 28% of total budgets. Growth is led by mobile device spending, which will increase by over 15% and represents 78% of total digital spending. By format, growth is led by social at over 15%, search at over 14%), and video at over 13%.

It is also noted that media owners advertising revenues are increasing by over 5% in Thailand in 2022 to reach THB124.3b (around US$3.9b). At a global level, media owners’ advertising revenues will grow by over 9.2% this year to nearly US$828b or about 32% above the pre-COVID level of 2019. Meanwhile, APAC advertising revenues will increase by over 7% to US$273b, which is 35% above the pre-COVID spending level, driven by digital advertising growth by over 12%.

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Platforms Featured South Asia

Pakistan’s linear ad revenue to reach US$480m by end of 2022

Islamabad, Pakistan – The revenue on linear advertising in the Pakistan market is set to grow by 5% by the end of 2022 at US$480m, slightly higher than its pre-COVID revenue of US$460m at 6%, according to the latest data from global media investment and intelligence company MAGNA.

The growth is parallel to Pakistan’s growing economy, with real GDP forecast to grow by +4% in 2022, according to the latest IMF report, following growth of +3.9% in 2021. 

 Format-wise, OOH (+10%) and television (+5%) is expected to see the strongest growth in 2022 for Pakistan, while print will continue to stagnate at -1%, and radio seeing a modest increase of +4%.

Meanwhile, digital ad formats will experience much stronger growth, with revenues rising +28% to reach US$170m. This follows strong 2021 growth of +38%, driven by significant increases from digital video (+43%) and search (+41%). Digital (+41%) and search (+29%) will continue to drive growth in 2022, along with social (+23%). 

Digital media remains relatively underdeveloped in Pakistan, accounting for less than 30% of total ad dollars, compared to the APAC average of 63% and of neighboring country India with 33%. Over the next five years, the report anticipates a digital CAGR of +28%. Over 70% of digital ad dollars currently go towards mobile formats; this share is expected to increase to 86% by 2026.

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Marketing Featured South Asia

Sri Lankan ad market to grow by 11% in 2022

Sri Lanka – In 2020, the Sri Lankan advertising market contracted by -9% amid the Coronavirus crisis and political and economic turmoil in the country, where real GDP fell by -3.6%, before recovering by +13% in 2021, according to a global ad market study by Mediabrands’ intel arm MAGNA. In the upcoming year 2022, further growth of +11% is anticipated in the Sri Lankan market, to be driven primarily by digital formats (+26%).

Said sighted growth for the upcoming year is a slight slowdown from 2021 (+13%). Across the APAC region, digital emerged as the backbone of growth, with all digital formats expected to see another year of double-digit growth with +51% for video, +26% social, +23% for search, and +18% for display. In total, digital advertising revenues are expected to reach $140m for the region, or a 36% market share. 

Linear formats will also see some growth in APAC, though on a smaller scale. Television (+5%), radio (+8%), and OOH (+17%) will see the strongest growth in the region, while print is forecasted to decline slightly by -3%. The report noted that 2023 will bring continued recovery for most linear ad formats, again with the exception of print, but over the long term, MAGNA anticipates digital will continue to gain market share at the expense of linear media channels.

In other markets in the South Asia region such as in India and Pakistan, the ad market is also fairly looking up. Indian net ad sales revenue grew +14% in 2021 to reach $8.9b, where growth is expected to accelerate in 2022 to fuel an ad revenue increase of +15%. 

Meanwhile, in Pakistan, linear net advertising revenues are expected to grow by +5% in 2022, a slight slowdown from 2021 growth of +6%. 

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Marketing Featured ANZ

Ad economy in NZ sees over 18% growth in 2021: report

New Zealand – As New Zealand ramps up its vaccination efforts against the COVID-19 pandemic, brands continue to spend aggressively on advertising, enabling the advertising economy in the country to increase by more than 18% in 2021 to reach US$2b (NZ$3.1b), according to a report by IPG’s media investment and intelligence arm, MAGNA.

In this environment, linear advertising revenues also increased by over 8.2%, which do not yet offset the declines suffered for linear ad formats in 2020, and linear advertising spending in 2021 was just 87% of its pre-COVID total. 

Moreover, the same report revealed that television revenues increased by over 15%, completely offsetting the pandemic crisis losses, and is also the strongest growth for television since 2003. Meanwhile, print continued to shrink by more than 6%, while OOH spending grew slightly by over 5%, but it is still just 68% of its pre-COVID total.

According to MAGNA, digital advertising revenues in New Zealand grew by +26% to reach US$1.2bn (NZ$1.9b). The spending was led by campaigns on mobile devices, which grew by +34%, representing 67% of total digital budgets. By format, growth was led by search with over 33%, social with more than 31%, and video with over 21%. 

“Digital will continue to take share compared to linear advertising formats, and by 2026 digital budgets will represent 72% of total advertising budgets,” said MAGNA.

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Marketing Featured East Asia

The ad markets that lost in Japan amid ‘unideal’ Tokyo Olympics 2020

Tokyo, Japan – After numerous suspensions, the Tokyo Olympic 2020 games finally pushed through this year, but despite successfully making its run, the lockdowns and social restrictions that had been in place since the pandemic affected how the organization and its brands and media partners spent their ad budget and the platforms they chose to invest in. According to data by IPG’s media investment and intelligence arm MAGNA, the muted vibrancy of the Olympics had a direct effect on the growth of several ad markets. 

The report showed that the net impact of the Olympics on television advertising revenues was relatively minimal overall, as some brands opted not to run creatives tied to the Olympics before and during the event, due to the mixed feelings of the public towards the Games. Still, revenues for the major television networks were up by double-digits in the second quarter of 2021 compared to the second quarter of 2020 but were flat or down compared to 2019. 

In addition, the Olympics also had a relatively mild impact on OOH advertising, as the games were held during a state of emergency during which people were discouraged from going outside or using public transportation. Additionally, people were barred from entering the areas near the Olympic stadiums. 

OOH revenues, both static and digital, were ultimately up just +3% for the full year, reaching US$3.8b (¥400b). Transit mobility was slow to recover in 2021 and was still down -19% in November 2021 compared to the January 2020 baseline, contributing to reduced exposure to advertising. 

Television fared slightly better, with revenues rising +7% to reach US$14.7b (¥1.6t), around 95% of the pre-COVID total. Radio, cinema, and print continued to lag through 2021. Radio revenues eroded by another -2%, cinema by -4%, and print by -3%. 2022 is expected to bring a recovery for these linear ad formats, in addition to continued growth for television (+4%) and OOH (+5%). Over the long term, however, the report anticipates that linear advertising formats will continue to lose share to digital, with total linear revenues eroding by -3% to -5% per year and falling to US$20.8b (¥2.2t) by 2026, a 34% market share.

Generally, digital ad sales in Japan will continue to drive market growth, with total digital net advertising revenues anticipated to rise +15% to reach US$30.5b (¥3.3t), with a 56% market share. Linear net ad revenues will also see some growth, +4%, though will remain well below 2019 levels: US$24.4b (¥2.6t) compared to $26.9b (¥2.9t) in 2019. 

Japan remains the third largest ad market in the world and the second largest in APAC, behind China, with US$50b (¥5.3t) net ad revenues in 2021 and US$55b (¥5.6t) expected by the end of 2022. Meanwhile, the APAC region’s advertising economy grew by +16.5% in 2021, following the recession of 2020 (-0.8%). In 2022, the Asia-Pacific ad market will expand by +11.2%, close to the global average of +12% and in line with the pre COVID long-term regional growth.