Magna Global's Advertising Forecast for 2023 anticipates a rise in global media owners' net advertising revenues (NAR) to $853 billion this year, marking a 5.5% increase from 2022. The forecast also predicts a further 7.2% growth in 2024.

However, not all sectors are expected to enjoy this growth. Traditional media owners, including those in TV, Audio, Publishing and Out-of-Home (OOH) industries, are projected to see their 2023 ad revenues shrink by 4% to $266 billion. On the other hand, Digital Pure-Play (DPP) media owners have seen their ad revenue grow by 9.4% to $587 billion, accounting for 69% of total ad sales.

Ros Allison, Head of Production & Innovation at Magna Australia, commented on the Australian market: 'In 2023 Australia has seen linear ad formats struggling with economic uncertainty and trading weakness. The tipping point is now evident for linear TV as previously inelastic costs become less resilient, and revenues begin to follow audiences. We expect the Australian market to be subdued but positive into 2024, with easing inflation starting to loosen monetary policy. Accelerating growth for digital channels, including those owned by traditional media owners. New measurement metrics, continued digitisation and format innovation driving growth."

The fastest-growing market this year is India, with a 12% increase to $14 billion, while China recovers from zero COVID with a 9.8% increase. The Asia Pacific advertising economy has grown by 8.2% this year, outpacing the global average of 5.5%. This growth in the APAC region is primarily driven by digital advertising revenues. Search advertising revenues, in particular, have increased by 9.9% in 2023 and represented 48% of total digital advertising revenues.

Vincent Létang, EVP, Global Market Research at MAGNA, said, "As expected by MAGNA back in June, advertising spending re-accelerated in the second half of 2023 after four slow quarters from mid-22 to mid-23. The recovery is driven by easier year-over-year comps and stabilising economic conditions (inflation slowdown), and these improvements mostly benefit pure-play digital advertising formats."

Leigh Terry, CEO Mediabrands APAC, added: "The Asia Pacific advertising economy grew by 8.2% this year, higher than the global average on 5.5%, and powered by growth markets like India (+12%) Pakistan (+11%) and China (10 %). APAC as a region is still dominated by China, which represents approximately half of total ad revenues. The country's population, a massive 1.4 billion, makes it a key player in the global advertising market. GDP growth remains robust when viewed against other large and mature markets, however, consumer spending has remained resilient."