Ad market is recovering, thanks to Big Tech
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.