Author: Zinnia Gill

This Largely Untapped Audience Feels Three Times Happier Listening Together and Reports Stronger Advertiser Associations across Favorability, Search and Purchase Intent

NEW YORK – March 30th, 2023 – To uncover what marketers need to know about co-listening (the act of sharing digital audio experiences with one or more people), MAGNA’s Media Trails unit partnered with Spotify Advertising on new research: “The Togetherness Effect: Why Brands Should Be Paying Attention to Co-Listening.”

The Togetherness Effect found co-listening is a natural behavior for most people, with the majority of respondents (74%) saying they co-listen once a week or more often. Of those listeners: 86% are Gen Z, proving co-listening presents a real opportunity for brands looking to connect with hard-to-reach audiences.

The study also found co-listeners reported feeling happier (indexing at 307 above an average range of all emotions), more relaxed (285) and excited (173). Co-listeners also applied positive associations to the advertising they heard, with +12% pts. in search intent, +11% pts. in favorability and +8% pts. in purchase intent.

“Our research finds that advertisers who reach co-listeners are sharing a moment with an audience that is more likely to be feeling good, having fun and dialed into the content, ads included,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA, the investment and intelligence arm of IPG Mediabrands. “Co-listeners represent an untapped segment for advertisers to explore and an opportunity to maximize impact and build closer relationships with key audiences.”

How brands can engage co-listeners: 

• Focus on Storytelling:  Storytelling ads performed better than product-focused ads, with respondents agreeing the test spot “caught my attention” (at 114/100), “was something I was open to” (108/100) and “improved perception of the brand” (107/100).
• Device Matters: The study defined which connected devices are most favored by co-listeners. 79% of people on gaming consoles co-listen. For TV watchers, it’s 73%, smart speaker (62%), in-car speaker (58%), smartphone (52%) and laptop/desktop (50%).
• Pick your Time Wisely: Co-listening has its prime dayparts, too. More people are co listening during lunch, their commute, and at night time, compared to solo listening.
  • • The Top 5 Co-Listening Moments: Respondents shared what else they were doing while co-listening, topped by relaxing, and followed by hanging out with friends and cooking, entertaining kids and doing yoga.
• Mood Matters: 19% of study participants listening to podcast content reported feeling excited, 13% said they were focused and 9% felt curious, surpassing music listeners for each of these mood descriptors. Podcast listeners also reported a 17% increase in search intent and were 10% more willing to learn more about the brand.
  • • Good Vibrations: Study participants shared their feelings, stating co-listening: provided a “special bonding moment,” “puts us in a good mood to have fun” and was a “mood elevator.”

 

“From Wrapped and Blend to sharing an Instagram story with a Spotify song soundtracking the photo, it is clear that listening is a social experience,” said Jon Gibs,  global director and principal data scientist, Spotify Advertising. “Co-listening is the pinnacle of social listening but what does this mean for advertisers? Our data found that brands that looked beyond product-focused advertisements and leaned into creative storytelling in a co-listening environment saw a more powerful response from listeners.  It’s actionable insights like these that help us arm advertisers to create more impactful creative that better reaches their target audiences.”

The Togetherness Effect: Why Brands Should Be Paying Attention to Co-Listening enlisted 1,357 digital audio listeners, divided into co-listener and solo listener profiles, who listened to 30 minutes of digital audio content, via smartphone, speaker or desktop/laptop. Participants heard advertising from two brands, T-Mobile and CVS Minute Clinic, featuring both product-based and story-focused executions, and answered a range of questions concerning their demographics, media-consumption habits and opinions on advertising.

The full study can be found here.

About MAGNA:

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn.

About Spotify:

Spotify transformed music listening forever when it launched in 2008. Discover, manage and share over 100 million tracks and 5 million podcasts titles, for free, or upgrade to Spotify Premium to access exclusive features for music including improved sound quality and an on-demand, offline, and ad-free music listening experience. Today, Spotify is the world’s most popular audio streaming subscription service with more than 500 million users, including 205 million subscribers in more than 180 markets.

Media Contact:

Zinnia Gill
Mediabrands
VP, Global Corporate Communications
(646) 965-4271
[email protected]

Study delves beyond misaligned content to understanding what and how content areas impact brands

New York, NY – January 23, 2023 – Misaligned content – the idea that advertising your brand against content that is not in line with your brand’s values or ethos can be harmful – has long been a challenge in digital advertising. We know that misaligned content erodes the impact of ads, leading to decreased impact on metrics like purchase intent, for example. But, what about the content in the grey area? This area, also known as “questionable content”, remains largely unexplored within the digital landscape. As a response, MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, in partnership with Channel Factory, delved into this topic in a research study released today, The Art of Alignment: The Relationship Between Brand Personality and Content Appropriateness. The study explored the nuances in video types, and how they relate to consumers’ perceptions of the brand that is advertising against this content. Notably, the study pointed out that brands are held accountable for the content they appear next to, which was clear in all three markets studied.

The Art of Alignment: The Relationship Between Brand Personality and Content Appropriateness also found that blocking entire categories is not the answer, as perceptions of content differ by consumer. The study explored content that may or may not be aligned with individual brand values as it pertained to brands across a variety of verticals and markets.

The study recruited about 5,800 participants across three markets: Australia, U.S. and U.K. Participants were regular users of a popular social media video app, and they were driven to a controlled mobile version of the app to watch content, with a 15-second pre-roll test or control ad delivered based on randomization. A post-exposure survey was delivered to participants to measure impact on brand KPIs, and also included a POV section to understand content perceptions. The types of content served spanned auto, entertainment, gaming, learning and sports. The research studied brand ads and control ads across the following industry verticals: apparel, beverages, financial services, quick-service, technology and toys.

“Ad environments that fall into grey areas require careful judgment calls be made by brands and their agencies,” said Joshua Lowcock, Global Chief Media Officer at UM. “There isn’t always a one-size fits all solution as misaligned content for one brand could be a smart, under-leveraged opportunity for another. Put differently, what’s right for one brand isn’t always right for another.”

Key findings from the study that may be of interest include:

• Brands have the most to lose with Gen Z Adults and Millennials: Purchase intent decreased by 6% for Gen Z and 8% for Millennials when the brand ran ads against questionable content vs. standard content.
• Brands are held accountable for content they are adjacent to: Across all three markets, consumers agreed a brand was supporting the content their ad was adjacent to (41% U.S., 49% UK and 36% Australia). Consumers have become savvier about the advertising ecosystem as well and shared that they felt an ad being shown before the video had some sort of direct correlation with the brand.
• When content is questionable it prevents the message from sticking and persuasion metrics also take a hit: Consumers from all three markets had stronger message association adjacent to standard content (+12 pts) versus ads adjacent to questionable content (+3 pts). Persuasion metrics like purchase intent and search intent had major decreases (+4 pts and +6 pts, respectively).
• What’s OK for one brand may not be for another: Perceptions of appropriateness vary by brand; while questionable content feels most inappropriate for the toy (26 over index) and financial services (11 over index) brands, it’s less likely to be perceived as misaligned for the beverage (indexed at 86) and quick service brands (indexed at 78).
• In a professional environment, brands should be even more cautious about suitability: When targeting a B2B audience with a B2B ad, questionable content is deemed even less appropriate, with 45% disagreeing with the appropriateness of the content when it comes to B2B financial services brands, and 38% for B2C financial services brands.

“Exploring the grey areas of content in online advertising was an interesting foray into the power of brand perception and how consumers are becoming savvier within the industry landscape,” said Kara Manatt, EVP, Managing Director, Intelligence Solutions, MAGNA. “Brands need to lean into the challenges that the grey area of questionable content provides.”

“Similar to how brands have always made decisions about where to buy print ads or place their billboards, we believe brands buying media placements in online video should have the same rigor, and this study proves out how important alignment is,” said Lauren Douglass, SVP Marketing, Channel Factory. “Especially with younger audiences, consumers are sensitive to what content a brand is running alongside, as they believe the brand is proactively supporting that video. Advertisers who are thoughtful about the content they support will be more successful from a perception and purchase intent perspective.”

The full study can be found here.

This research comes on the heels of another study conducted by MAGNA and Channel Factory in 2021, “The Proximity Effect: Quantifying the Impact of Misaligned Content in the Wild West of Video,” which examined the layers of content suitability and how it can affect brands’ advertising efforts (read more about it here).

About Channel Factory:

Channel Factory is a global technology and data platform that maximizes both performance efficiency and contextual suitability and alignment, turning YouTube’s 5 billion videos and 500 hours per minute of new content into brand-suitable, efficient advertising opportunities. Channel Factory’s mission is to create a suitable video ecosystem that connects creators, brands, and consumers – by enabling advertisers access to the most relevant videos, channels, and creators.

Through their proprietary platform that harnesses the power of the deepest YouTube dataset in the industry, Channel Factory has enabled advanced brand suitability, customized content alignment targeting, and maximum performance for the world’s biggest brands. Channel Factory’s algorithm ensures not only that advertisers run against content that aligns with their brand but also delivers outcomes by optimizing campaigns using active and historical campaign performance data.

Channel Factory has offices across the USA and is present in over 30 countries worldwide including the United Kingdom, Sweden, Norway, Denmark, Finland, France, Germany, Spain, Ukraine, Australia, Hong Kong, and Singapore.

About MAGNA:

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

 

 

Media Contact:

Zinnia Gill

Mediabrands

VP, Global Corporate Communications

(646) 965-4271

[email protected]

 

 

Study finds brands that use innovative streaming TV ads drive 78 percent greater search intent compared to traditional TV ads

NEW YORK, NY – January 19, 2022 – MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Roku announced a new study in partnership with the Roku Brand Studio that finds new video ad formats in streaming TV are 2X more favorable than traditional TV ads for consumers.

Today, marketers want to stand out in the shift to streaming. Traditional TV ads alone miss an opportunity to surprise and delight across the entire streamers’ journey. The Beyond the :30 on Streaming TV report examines how marketers can make streaming TV ad experiences more engaging than traditional TV ads. Ninety-four percent of participants indicated that new ad formats can improve the ad experience.

Three new ‘Beyond the :30’ video ad formats were tested:

• Thematic Tagged Vignette: A :30 second animated ad where a brand celebrates streaming
• Roku Original Vignette: A :30 second ad where a brand references the Roku Original show being streamed
• Watch Alongs: Ad breaks where a brand sponsors discussion about the show or movie being streamed

All three ‘Beyond the :30’ ads posted stronger results than traditional TV ads for top-of-mind brand recall (+57% ‘Beyond the :30’ vs. +43% traditional), brand favorability (+8% vs. +3%), and intent to search (+16% vs.+ 9%). These results illustrate the strong promise of ‘Beyond the :30’ ads, including enhancing brand awareness and promoting purchases.

“In the current advertising environment, it is important to recognize that viewers can easily skip over advertising, but our study found they are less likely to do so if the ads are as entertaining as the programming and present a more enjoyable experience,” said Kara Manatt, EVP, Managing Director, Intelligence Solutions, MAGNA. “One of the most memorable formats for viewers is Watch Alongs, likely because the advertiser is offering the viewer added value to the show they are watching.”

Key findings from Beyond the :30 on Streaming TV include:

• Thematic Tagged Vignettes catch attention: 65% of respondents agreed that the spots “taught me something new,” besting traditional spots by some 20 points.
• Roku Original Vignettes triple return on purchase intent: +10% purchase intent for Roku Originals Vignettes vs +3% for traditional TV ads.
• Watch Alongs improve recall: 66% top-of-mind ad recall for Watch Alongs vs. 39% for traditional ads.

“Better TV storytelling for brands starts with Roku,” said Asaf Davidov, Director, Head of Ad Measurement and Research at Roku. “The takeaway for marketers is clear — the key to winning the entire streamers’ journey is surprising and delighting beyond the traditional TV spot.”

The research involved multiple brands representing different verticals, including T-Mobile and Subaru. An at-home panel of 1,316 viewers was divided into randomized exposed and control groups, who watched content of their choice interspersed with streaming-specific advertising and traditional advertising. Following the content-viewing experience, viewers were surveyed to assess the impact on brand key performance indicators, or KPIs, and to learn more through consumers’ points of view.

The full study may be found here.

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Roku, Inc.

Roku pioneered streaming to the TV. We connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku streaming players and TV-related audio devices are available in the U.S. and in select countries through direct retail sales and licensing arrangements with service operators. Roku TV™ models are available in the U.S. and in select countries through licensing arrangements with TV OEM brands. Roku Smart Home products, including cameras, video doorbells, lighting, plugs, and more are available in the U.S. Roku is headquartered in San Jose, Calif. U.S.A.

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to those related to trends related to TV streaming, marketing and advertising related to TV streaming; the benefits, features, and capabilities of the advertising in streaming TV; and the benefits, growth and reach of the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

Roku is a registered trademark of Roku, Inc. in the U.S. and in other countries. Trade names, trademarks and service marks of other companies appearing in this press release are the property of their respective holders. 

GLOBAL ECONOMIC RECOVERY BRINGS RECORD AD MARKET GROWTH

KEY FINDINGS

• Global advertising spending will grow by $78bn in 2021 (+14%) to $657 billion, a new all-time high, following a decline of -2.5% in 2020. The marketplace will continue to grow in 2022 (+7%).
• Advertising activity is fueled by (1) economic recovery (global GDP +6.4%) benefitting key ad-spending verticals severely hit by COVID-19 last year (automotive, travel, entertainment, restaurants), (2) stronger-than-ever organic drivers to digital marketing, and (3) international sports events (Tokyo Olympics, UEFA Euro).
• Digital ad formats capture most of the growth with ad sales up +20% to $419bn, 64% of total ad sales.
• Linear ad sales are slower to recover but will stabilize full-year (+3% to $238bn).
• All 70 ad markets monitored will expand again this year with China (+16%) and the UK (+17%) among the largest increases.
• The US market will grow by $34bn (+15%, strongest growth rate in 40 years) to reach $259 billion, with digital ad sales up +20% and non-political linear ad sales up +4%.
• Linear ad sales still represent the bulk of ad revenues for traditional media owners and their continued stagnation will trigger a wave of consolidation in the media industry, aimed at competing with digital media players.

 

According to Vincent Létang, EVP, Global Market Research at MAGNA and author of the report: “As economic recovery is stronger and faster than anticipated in several of the world’s largest ad markets (US, UK and China, in particular) and consumption accelerates, brands need to reconnect with consumers. At the same time, the acceleration in ecommerce and digital marketing adoption that started during COVID, continues full speed into 2021, fueling digital advertising spending from consumer brands as well as small and DTC businesses. This unique combination of cyclical, organic and structural drivers will lead to the strongest advertising annual growth ever monitored by MAGNA: +14% globally (+15% in the US).”

GLOBAL AD MARKET: +14% TO $657 BILLION

As the economy recovers faster than expected globally (GDP +6%) and in most markets, so do marketing activity and advertising spending. With the added driver of rescheduled international sports events, MAGNA forecasts global all-media advertising spending to grow by $78bn (+14%) to $657bn in 2021, a new all-time high. MAGNA also raises its forecast for advertising market growth in 2022 to +6.6% (previously +5%). The +14% growth expectation for 2021 would represent the highest growth rate on record, beating +12.5% in 2000, and a significant increase from MAGNA’s previous global forecast (Dec. 2020: +8%).

Economic recovery will lift all boats, but the contrast has never been wider between digital ad sales accelerating (+20% to $419bn) and linear ad sales (linear TV, linear radio, print, OOH, cinema) which are barely stabilizing (+3% to $238bn after 2020’s -18% decline). COVID may be receding in most markets but the changes to lifestyles, media consumption and business models continue to fuel an acceleration in the adoption of digital marketing from both national consumer brands and small, local and “direct” businesses. Digital growth from consumer brands comes partly at the expense of traditional linear channels but in the case of small businesses (that represent the bulk of search and social ad spend), it is mostly incremental to the advertising pie.

All of the 70 ad markets monitored by MAGNA will grow to some degree in 2021 and 2022. In 2021, Asia Pacific ad markets will grow by +13%, EMEA markets by +12%. Latin America and North America will both grow by nearly +15%. Everywhere, the pattern is similar, with linear ad sales to grow by low- to mid-single digits and digital ad sales growing by +20% or more. The United States remains the largest market and will increase by +15% in 2021, and will still remain ahead of China (+16%), Japan (+9%), the United Kingdom (+17%) and Germany (+11%) among the top five markets.

Nearly all digital ad formats will grow by double-digits in 2021 as total digital ad sales will account for 64% of global all-media ad spend. They will reach two-thirds of all advertising sales in 2022. The explosion of ecommerce will boost search by +20% to $200 billion, while growing marketing adoption and media consumption will drive social media by +26% to $119 billion. Video ads will grow by +24% to $57 billion as short-form, long-form AVOD and OTT ad spend are all fueled by increased reach and viewing. Out-stream video and static banners may grow at a more subdued pace (single-digits) due to the increasing limitations to tracking and targeting on websites (on Safari and soon Chrome) and apps (on iOS14).

Among linear ad formats, MAGNA expects linear television ad sales to recover as consumer brands (e.g. automotive, drinks) compete for returning consumers in a brand-safe environment. Advertiser demand will drive CPM inflation (average +8%) which offsets eroding ratings. In addition, international sports events bring additional ad budgets: Global TV ad sales will thus grow by +3% to $153 billion. Radio and out-of-home media will benefit from businesses re-opening in several key verticals (e.g. automotive, retail, entertainment) as well as a gradual return to consumer mobility that will restore their audiences; ad sales will increase by +5% and +10% respectively. Print ad sales will not quite stabilize as the return of key verticals (fashion, beauty, travel) will not offset the continued decline in circulation and ad pages. Newspaper and magazine ad sales will decrease by -4% and -5% respectively.

The scale reached by digital media owners and the stagnation of linear ad spend is forcing traditional media owners to consolidate to compete more effectively and invest in cross-media technology. MAGNA believes the spring announcements in the US (Warner/Discovery) and in France (TF1/M6 with a combined market share of 85%) are just the beginning of a new wave of mergers and acquisitions globally.

US AD MARKET: +15% TO $259 BILLION

In the US, media companies’ net advertising revenues (NAR) will reach a new all-time high of $259 billion in 2021. That will be an increase of $34 billion (+15%) over 2020. The +15% growth will mostly be driven by digital advertising acceleration (+24%) while linear ad sales will only show modest growth (+4% excluding political). The new growth forecast represents the strongest acceleration in 40 years and stands nine percentage points above the previous MAGNA forecast (published March 2021). The upward revision comes from a better-than-expected start of the year and an increasingly strong economic outlook for the coming months: For example, the International Monetary Fund (IMF) recently increased its full-year, real GDP forecast to +6.4%. Marketing activity and advertising spending will be fueled by strong consumption, a fast-recovering job market, the reopening of many businesses (restaurants, theaters, amusement parks…) and the return of normal events and sports schedules, plus the Olympics.

Following a strong 1Q21 (+16%, driven by huge digital growth), MAGNA expects second quarter ad sales to grow by at least +35% year-over-year (YOY), against a historically low quarter in 2Q20 (-17%). Strong YOY growth will continue in 3Q21: +13% with $900m of incremental ad spend generated around the Tokyo Olympics. Growth will slow down to +4% in 4Q21, which compares against a strong quarter in 4Q20 that was boosted by record political spending and a robust holiday season.

Digital advertising sales will grow by +24% to reach $179bn, to approach 70% of total ad sales. Unlike linear media, the digital market quickly rebounded from its lows in the second quarter of 2020, and it has been red hot ever since. First-quarter digital ad sales were up +35% YOY and the second quarter is expected to grow by at least +40% YOY.

Within digital media, social, video and search will drive growth. Both social media and digital video will grow +28% this year, while search will gain +23%. Video will be driven by the short-form segment, as both YouTube and Twitch continue to report strong results, and the long-form segment, as the proliferation of AVOD platforms in 2020 (Peacock, Paramount+, etc.) demonstrate, will capture dollars lost in linear TV. Digital audio will also grow in 2021 (+17%) as consumption and marketing usage in podcasts continues to increase rapidly.

Non-political linear advertising sales (linear TV, radio, print, out-of-home and cinema) will increase by +4% to $81 billion, but due to the lack of political spend this year, total linear ad sales (including political) will be merely stable. Linear ad spend has been slow to recover in 1Q21 and ad sales were still down vs 2020 (-11% YOY), but more easily, the return of sports, and consumer mobility will help stabilize the market in the next three quarters. Within linear media, out of home will show the highest growth, +11% over 2020, following a heavy decline in 2020 (-25%) and in 1Q21 (-28%), as mobility recovers and advertising spending comes back from entertainment, retail and travel (all among top 5 spending verticals). Local TV will benefit from the recovery of its No. 1 industry vertical, automotive (Jan-April car sales up 29%), driving non-political ad sales by +10%. Radio ad sales will increase by +7% to $10bn, thanks to automotive and entertainment verticals (both in the Top 4 radio verticals). Print is the only linear ad format that will not grow again in 2021 (-14%), though national newspapers and magazines will fare better than their local counterparts. National TV ad sales will grow by 5% to $38 billion helped by stronger pricing and incremental spending around the Tokyo Olympics.

Traditional media owners’ cross-platform ad sales (linear+digital) will grow by +5% in 2021, with total television ad revenues up +6% (including long-form AVOD +25%) and audio ad sales up +10% (including audio streaming and podcasting up +35%). The digital ad sales of newspaper and magazine publishers, which now stand at half of total publishing ad sales, will grow further this year (+14%) but not enough to offset the continuing decline of print ad sales (total ad revenues -14%).

In 2022, MAGNA expects the US advertising market to grow by +8% to reach $280bn, thanks to continued economic growth (GDP growth between +3.5% and +4.3%) and more cyclical drivers (Winter Olympics in 1Q22, mid-term elections in 4Q22). Marketing and advertising activity will also benefit from a full year of an open economy compared to 2021, when the first quarter was still partly hampered by COVID. This is a two-percentage point upward revision from MAGNA’s previous report in March.

MAGNA believes the recent merger announcement between Warner Media and Discovery is the first of a new wave of consolidations to come in the media industry. Facing stagnation in linear media consumption and linear ad sales that are still the bulk of their business revenues, traditional media companies have no choice but to grow in scale, in order to compete with digital media giants, and invest in cross-platform advertising solutions. Traditional media owners are moving now as they believe antitrust authorities are ready to consider market shares in the broader media market and thus approve horizontal consolidations that would have been unthinkable just five years ago. The US TV market remains relatively fragmented following the merger of Warner and Discovery: The top three TV ad vendors (currently NBC, ViacomCBS and Warner/Discovery) will control just 60% of the US TV advertising market, compared to 90%+ for the top three broadcasters in most other advanced markets. Moreover, they will control only 15% of the broader, cross-platform ad market compared to 30% for Google or 16% for Facebook. Media consolidation is global, and international markets remain a step ahead as the top two French broadcasters (combined market share 90%) just announced their own merger plans.

• DOWNLOAD full MAGNA reports and datasets: WWW.ATLAS.MAGNAGLOBAL.COM (Mediabrands employees and MAGNA subscribers)
• NEXT UPDATE: September 2021 (US), December 2021 (US & Global)

TABLE 1: GLOBAL NET AD REVENUES (NEW GROWTH FORECASTS)

KEY MARKETS                     2020         2021           2022

WORLD                                 -2.6%         13.5%        6.6%

NORTH AMERICA               0.2%         14.9%         7.9%

LATIN AMERICA              -11.5%        14.8%         5.8%

WESTERN EUROPE          -5.0%        12.4%         5.9%

CENTRAL &                          -3.4%       11.6%          5.1%

EASTERN EUROPE

EMEA                                     -5.0%       12.0%            5.9%

APAC                                      -3.3%        12.8%            5.5%

AUSTRALIA                         -5.1%        11.4%              2.9%

BRAZIL                                  -6.8%       15.2%             6.9%

CANADA                               -5.8%        11.4%              5.7%

CHINA                                     2.6%         16.1%              5.9%

FRANCE                                -6.0%         13.1%              7.2%

GERMANY                            -3.7%          10.9%             5.0%

INDIA                                     -22.8%        11.0%              13.6%

ITALY                                      -10.4%        7.7%                4.0%

JAPAN                                      -6.0%          8.8%                4.9%

RUSSIA                                     -1.8%          11.6%               4.9%

SPAIN                                       -10.7%         15.2%               7.5%

UNITED KINGDOM             -2.6%          16.8%                8.0%

USA (EXCL. CE)                     -1.7%            17.4%               6.5%

USA (INCL. CE)                        0.5%            15.1%                8.0%

Source: MAGNA, June 2021

TABLE 2: NET AD REVENUES IN KEY MARKETS (NEW vs OLD FORECAST)

2021 Growth                              Fall 2020              Spring 2021             Change

World (all media)                         7.6%                          13.5%                     5.9%

North America                               4.2%                           14.9%                    10.8%

Latin America                                 8.3%                            14.8%                     6.6%

Western Europe                              9.1%                            12.4%                      3.3%

Central and Eastern Europe       9.5%                            11.6%                      2.1%

Emerging                                            11.2%                            14.4%                     3.2%

Developed                                           6.4%                             13.2%                      6.9%

Europe, Middle East, Africa         8.9%                             12.0%                      3.1%

Asia Pacific                                          11.1%                               12.8%                     1.7%

Total Linear                                          3.5%                               3.1%                    -0.4%

Total Digital                                        10.4%                               20.4%                  10.0%

Source: MAGNA, June 2021

TABLE 3: NET ADVERTISING REVENUES – US MARKET

AD FORMATS                                       2020                              2021                             2022

DIGITAL AD REVENUES                  13.3%                            23.5%                         11.1%

Search                                                       11.6%                             23.2%                       11.4%

Online Video                                           23.5%                            28.1%                      15.8%

Social Media                                            21.4%                             28.3%                    12.6%

Mobile                                                        20.4%                             16.1%                    15.2%

LINEAR AD REVENUES (incl. CE) -16.4%                            -0.1%                     1.2%

National TV (incl. CE)                         -11.8%                                5.1%                   -3.7%

National TV (excl. CE)                          -12.3%                              3.6%                  -3.6%

Local TV (incl. CE)                                     0.8%                             -11.0%                 15.1%

Local TV (excl. CE)                                    -18.7%                            9.9%               -4.4%

Print                                                                -31.6%                           -13.9%           -16.7%

Radio                                                                -31.0%                             6.0%               3.6%

Out-of-home                                                -24.6%                            10.4%             8.2%

Cinema                                                              -79.9%                            135.9%       50.0%

Direct Mail                                                       -13.6%                            -4.0%         -0.7%

GRAND TOTAL (incl. CE)                              0.5%                               15.1%          8.0%

GRAND TOTAL (excl. CE)                              -1.7%                              17.4%          6.5%

Source: MAGNA, June 2021

ABOUT THE RESEARCH

MAGNA research is media centric. It monitors net media owners advertising revenues based on a bottom-up analysis of financial reports and data from media trade organizations; other ad market studies are based on tracking ad insertions or consolidating agency billings. The MAGNA approach provides the most accurate and comprehensive picture of the market as it captures total net media owners’ ad revenues coming from national consumer brands’ spending as well as small, local, “direct” advertisers. Forecasts are based on economic outlook and market shares dynamic. The full report contains more granular media breakdowns and forecasts to 2025, for 70 markets.

ABOUT MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.
MAGNA has set the industry standard for more than 60 years by predicting the future of media value. We publish more than 40 reports per year on audience trends, media spend and market demand as well as ad effectiveness.

To access full reports and databases or to learn more about our market research services, contact [email protected].

Current Global with the Public Relations & Communications Association Release Industry Guidelines  

New York, NY – April 21, 2021 – People with disabilities, representing 15 percent of the global population, regularly consume all types of content, but are they able to fully access that content comfortably? A new study by Current Global, MAGNA and the IPG Media Lab, “Digital Accessibility: The Necessity of Inclusion,” answers this question and more by revealing that brands must prioritize accessibility and inclusivity in communications planning – it’s no longer a “nice to have.”

With a collective global buying power of $8 trillion, this community represents a significant audience for marketers to exclude by default or design:

• 285 million people are visually impaired; 39 million are blind and 82 percent of all blind people are age 50+.
• 466 million people have disabling hearing loss; by 2050, that number will rise to over 900 million.
• Between 1-3% of the population has an intellectual disability, as many as 200 million people; intellectual disability is significantly more common in low-income countries – about 16 in every 1,000 people.
• About 18.5 million people have a speech, voice, or language disorder.

 

“Content is published every day that’s inaccessible to many, but it doesn’t have to be that way,” said George Coleman, Co-CEO of Current Global. The agency made an industry-first commitment in December 2020 that every piece of communication developed, curated or published on behalf of the firm and its clients will meet the highest accessibility standards. “If brands don’t adjust their communications strategies to reach all audiences, they will miss out on forging long-lasting relationships with a large population of consumers,” he added.

Study participants had visual, hearing, cognitive, or speech disabilities. The findings show that people with all types of disabilities consume many forms of media, yet have trouble accessing content comfortably and with ease, even when using assistive tools. Understanding the lived experiences of people with disabilities clearly shows assistive tools don’t always work, with the content itself being half the problem. In addition, the study found that accessibility in communications has a direct impact on how people feel about a brand.

• People with disabilities are regularly consuming all forms of content weekly or more often, particularly visual content (98%): Social media, TV shows and short video clips are favored by survey participants (89%, 86%, and 80% respectively).
• Social media platforms are comparatively difficult to use: No matter the type of disability, people find social media somewhat difficult or very difficult to use (visual: 22%; hearing: 17%; cognitive: 23%; speech: 27%). Some of the problems reported include small text, misleading buttons, ads interfering with actual posts, far too many options and menus, and hard to navigate.
• Assistive tools are a flawed experience: 54% of respondents, regardless of disability, use an assistive tool to help read, view, or listen to content; 64% of those who use an assistive tool reported having problems consuming content even with an assistive tool and 34% have problems consuming content because of the tool itself. Moreover, 56% of the overall audience needs assistive tools, but don’t have access to them – citing cost as a major issue.
• Lack of accessibility has become a normalized experience: On the surface, people think brands are doing a good job (40%), but standards are low to begin with; the study found that people with disabilities were not sure what changes companies should make.
• Inaccessible communications cause negative emotions and can have serious repercussions for brands: 81% reported a negative emotional response when a brand’s communication was inaccessible, with 38% also feeling frustrated. When brands are accessible, they reap a host of benefits, with 60% taking a positive brand action and 81% having a positive emotional response and feeling connected to the brand.

 

“It’s astounding how much work still needs to be done to make communications accessible to people with disabilities,” said Kara Manatt, SVP, Intelligence Solutions, MAGNA. “This audience is consuming a lot of content, so brands need to ensure they put in the work to make communications more accessible. Assistive tools are only part of the solution – if communications aren’t accessible, the tools can’t really be effective.”

The full “Digital Accessibility: The Necessity of Inclusion” study, which queried over 800 people from the United States and United Kingdom, can be found below.

Download the full report 

 

New Guidelines Designed to Make Communications Accessible to All

Current Global worked with the Public Relations & Communications Association (PRCA) to publish the PRCA’s Accessible Communications Guidelines, also in partnership with the PR Council. The free guidelines detail the tools available to agencies and in-house teams and the standards and processes they should apply to make their content as inclusive as possible.

Download the PRCA guidelines

 

“As professional communicators, it is incumbent on us to make communications inclusive for people of all abilities so we can reach every member of society,” said Francis Ingham, Director General, PRCA and Chief Executive, ICCO. “The technology and tools to help us do this are readily available, so the key priority is to update the way we work to adhere to best practices laid out in the guidelines.”

To supplement the research and guidelines, Current Global created a website to inspire, inform, and instigate change across the industry. The site will feature relevant research, news, best practices, cases studies, and an accessibility commitment that organizations can sign to show their intent to develop, curate or publish communications that will meet the highest accessibility standards.

About Current Global:

Current Global is part of IPG’s (NYSE: IPG) DXTRA unit and its portfolio of public relations and communications firms. A midsized global agency with a full-service offering, our team of inquisitive, insightful, and imaginative people mix scientific rigor with creativity to get to the very core of how communications can drive outcomes. Our heritage is a deep understanding of earned media, but we are equally adept at developing integrated campaigns that encompass paid, owned, and social. Discover how we help clients Own the Moment at www.currentglobal.com.

About MAGNA:

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers. We are a team of experts driven by results, integrity, and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity, and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn and Twitter.

About IPG Media Lab:

Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies, and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.

 

Media Contact:

Zinnia Gill

Mediabrands

Director, Global Corporate Communications

(646) 965-4271

[email protected]