Linear Ad Sales Expected to Drop 12% in 2020 and 2021 Due to Coronavirus Crisis
Revised Magna forecast shows steep advertising declines across the board
Out-of-home advertising is projected to drop by 12% this year as many Americans are told to stay home or shelter in place.
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Key insights:
- The closest historic comparison is a combination of the Great Recession and Sept. 11, 2001, Magna said.
- The postponement of the Summer Olympics may help recovery in 2021.
The continuing COVID-19 outbreak means a less-than-rosy outlook for media owners’ net advertising revenue forecasts. Media suppliers’ total linear ad sales, previously expected to hold steady this year, are now projected to decline by nearly 12% in 2020, according to a revised ad forecast from the IPG Mediabrands-owned Magna Global. Full-year ad sales are expected to drop by 2.8% across all media, when they had previously expected to grow nearly 7%.
