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Data: MAGNA; Chart: Naema Ahmed/Axios (NOTE: National and Local TV estimates include cyclical spending on things like U.S. elections and the Olympics.)

The advertising market is expected to recover next year, according to the latest forecast from Magna, an advertising agency.

By the numbers: "If the mainstream macro-economic scenario holds, and the U.S. GDP grows by 3.2%, we are looking at a total ad market that would recover by 4% next year," says Vincent Letang, EVP and Managing Partner of Global Market Intelligence at Magna.

Yes but: The growth will mostly be in digital ads, while linear ad markets like TV and radio will barely stabilize.

Driving the news: Letang attributes the gradual stabilization of the market to 4 things:

  1. The economic reopening
  2. Political spend increases
  3. The return of sports to TV
  4. The Olympics

The big picture: "We think sports programs drives more than 20% TV ad spend in the U.S.," says Letang. Looking ahead to 2021, Letang says the Summer Olympics should generate roughly $800 million dollars of additional ad spend in 2021.

What's next: Nearly every industry is expected to start increasing spend on advertising, but two of the top client verticals, automotive and retail, will continue to struggle.

  • "Automotive was an industry that was already stagnating pre-COVID," says Letang. "Even if the economy recovers, the high unemployment rate will be an inhibitor to large ticket items like cars."
  • Automotive advertising slumps, combined with an off-year for political advertising, is going to severely impact local TV advertising.

Go deeper

Scoop: Google to lift post-election political ad ban on Dec. 10

Photo: Loic Venance/AFP via Getty Images

Google informed its advertising partners on Wednesday that beginning Dec. 10, it will lift the post-election political ad ban that went into effect after polls closed on Nov. 3, according to an email obtained by Axios.

The big picture: The lift comes about a month ahead of two crucial Georgia runoff races that will determine control of the Senate.

World leaders react to "new dawn in America" under Biden administration

President Biden reacts delivers his inaugural address on the West Front of the U.S. Capitol on Wednesday. Photo: Alex Wong/Getty Images

World leaders have pledged to work with President Biden on issues including the COVID-19 pandemic and climate change, with many praising his move to begin the formal process for the U.S. to rejoin the Paris Climate Agreement.

The big picture: Several leaders noted the swift shift from former President Trump's "America First" policy to Biden's action to re-engage with the world and rebuild alliances.

Updated 5 hours ago - Politics & Policy

In photos: The Biden and Harris inauguration

President Biden and first lady Jill Biden watch a fireworks show on the National Mall from the Truman Balcony at the White House on Wednesday night. Photo: Chip Somodevilla/Getty Images

President Biden signed his first executive orders into law from the Oval Office on Wednesday evening after walking in a brief inaugural parade to the White House with first lady Jill Biden and members of their family. He was inaugurated with Vice President Kamala Harris at the U.S. Capitol on Wednesday morning.

Why it matters: Many of Biden's day one actions immediately reverse key Trump administration policies, including rejoining the Paris Agreement and the World Health Organization, launching a racial equity initiative and reversing the Muslim travel ban.

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