Magna believes that media innovation will mitigate the impact of economic uncertainty on the U.S. advertising market, which is expected to reach an all-time high of $326B in 2023.
U.S. advertising revenues reached $315B in 2022, growing by 6%, excluding cyclical ad spending.
Magna expects ad revenues to increase by 3.4% in 2023, with digital advertising expected to grow by 9% and linear advertising expected to decline by 4%.
- The rise of retail media networks is expected to reach $41B in 2023.
- The continued growth of ad-supported over-the-top (OTT) streaming platforms has given brands cost-effective ways to reach audiences that had become difficult to reach through linear TV. Growth in OTT ad sales will offset the decline of linear TV as the long-form video market stabilizes around $44B.
- Automotive ad spending rebounded in the fourth quarter, which Magna says supported the ad industry and showed promise for the U.S. economy.
