Tag: MAGNA

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.

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%. 

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.

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.

New Zealand – As expected, digital advertising, in the middle of the pandemic, is forecast to comprise the larger fraction of ad spend by New Zealand advertisers in 2021 with 59% to comprise their overall media budget, according to a new global report by global media investment and intelligence company MAGNA. 

Although New Zealand, being primarily an island, has been successful in containing Covid-19, advertisers are still inclined to put their dollars into digital channels, which can be mainly attributed to how the media practices have evolved to leverage the appeal and impact of digital formats, whether lifestyles are hindered by the virus or not. 

The projected growth in digital follows 2020’s 3.3% growth rate. According to the report, most of the digital growth will come from spending on mobile devices, which will see specifically an 18% increase and to represent 67% of total revenues within digital advertising. 

Overall, the advertising economy in New Zealand is seen to increase by 7.6% in 2021 to reach NZD 2.8b ($1.8b).

Still in line with changing preferences of audiences, the report said that linear advertising revenues will see an uptick of 2.9% to represent 41% of total budgets, an actual down from taking 49% of budgets as recently seen in 2019. 

Meanwhile, in terms of specific mediums, television spending is forecast to grow by 5.6%, to represent one-fourth of total budgets. The report said that this will bring total spending levels back to 92% of their 2019 levels. On the other hand, radio and OOH are seen to fare slightly worse with a 2% growth to reach 86% of 2019 spending levels, and a 5% growth to reach 68% of 2019 spending levels, respectively. 

Globally, as the economy recovers faster than expected with a GDP of 6%, marketing activity, and advertising spending are likewise projected to demonstrate the same upward growth. With the added driver of rescheduled international sports events, the report forecasts global all-media advertising spending to grow by $78b, a 14% increase, to ultimately register an estimated $657b in 2021, a new all-time high, said MAGNA. 

Meanwhile, in the Asia Pacific, while the rollout of COVID vaccines has not been as aggressive as many Western markets, there were still fewer cases and deaths as well as fewer shutdowns vs. those markets in the west. This has not stopped consumers in the region from changing their behavior in the same ways as in heavily COVID-impacted markets, which meant more indulgence to stream, more adoption of e-commerce, and more integration of digital platforms into their daily lives. As a result, economic recovery and organic digital growth will power APAC’s total advertising spending to a 12.8% increase in 2021, following 2020’s 3.3% growth. This will see total advertising budgets in APAC reach $203b, significantly ahead of 2019’s $186b total.

According to Gurpreet Singh, managing director at MAGNA APAC, digital will continue to be the biggest growth driver across most markets fueling a faster recovery. Singh also said that since linear media was the most affected last year, its recovery back to pre-covid levels is going to remain a big challenge across the majority of APAC markets for the next few years.

“2021 will see higher than usual growth in ad spend bouncing off of the reduced spend we saw in most of the APAC markets last year. This will largely result in regaining lost ground, however, some markets will take more than a single year for their ad spend to recover from the impact left by covid,” Singh said.

APAC remains the second largest global advertising region, behind North America but $59b ahead of EMEA. 

Singapore – Short video platform TikTok and media marketing solutions IPG Mediabrands have announced a new partnership to aid brands in connecting with culture through exclusive creator programs.

The partnership will initially co-create a series of custom programs for IPG Mediabrands’ clients, helping them build an authentic presence on TikTok by tapping into the platform’s community of creators. 

In addition, the two companies will form a bespoke Creator Collective, bringing together a select group of forward-thinking and diverse creators who will provide hands-on guidance to IPG Mediabrands’ clients ensuring that their content is culturally connected, inclusive, and resonates with the TikTok community. 

‘Creator Camps,’ a quarterly session where creators will provide IPG Mediabrands clients strategic counsel and feedback on their upcoming campaigns, will be the first program of the series. 

“As the most improved platform from a media responsibility perspective based on our latest Media Responsibility Index, TikTok has earned this partnership through backing its words with action and integrity,” said Daryl Lee, global CEO at IPG Mediabrands.

TikTok and IPG Mediabrands have also committed to identifying new ways to foster diversity, equity, and inclusion on and off the platform. The two companies will collaborate to develop innovative, creative strategies to benefit nonprofit organizations and elevate underrepresented communities on the platform; and TikTok was a recent participant in the Equity Upfront, hosted by IPG Mediabrands’ MAGNA, the centralized company resource that develops intelligence, investment and innovation strategies for agency teams and clients.

Dani Benowitz, president of MAGNA commented, “As audience reach declines in traditional formats, it is critical that client budgets fund new ways to connect with audiences. This partnership will deliver incredible value to our clients and, as importantly, will help all of us learn the power of creating content communities at scale.”

For Blake Chandlee, president of global business solutions at TikTok, the partnership speaks for the company’s vision for brands that have the unique ability to become creators and storytellers by listening to the community and adopting an always-on approach to their content.

“We’re delighted to partner with IPG Mediabrands and help their clients tap into trends, create a steady stream of content that resonates with our community, and embrace the creativity and culture that makes TikTok such an incredible platform,” Chandlee stated.