Dec 8, 2020 - Economy & Business

Ad market is recovering, thanks to Big Tech

Data: Magna; Chart: Andrew Witherspoon/Axios
Data: Magna; Chart: Andrew Witherspoon/Axios

The ad market only ended up falling about 4.2% in the U.S. this year, thanks to digital media.

Why it matters: Analysts were initially expecting double-digit growth declines, but stronger-than-expected spend in social media and digital video helped to stabilize the ad sector as a whole.

The big picture: Tech giants like Google, Amazon and Facebook showed resilience this year, thanks in large part to the explosion of e-commerce, says Vincent Letang, EVP and director of global forecasting for Magna Global.

  • Those firms grew their digital ad revenues by more than the 8%, far outpacing most traditional and digital publishers.
  • "One could say digital media grew thanks to the COVID crisis," says Letang.

What's next: While traditional ad mediums are expected to return to pre-pandemic growth levels, more dollars overall are going to continue to flow back into digital media.

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