The U.S. advertising industry is on track to surpass $300 billion in total ad spending for the first time ever, according to a new forecast from Interpublic Group of Cos.' Magna, which shows that nationwide ad revenues are poised to grow 9.8% year-over-year in 2022.
A driving force behind that performance is the trifecta of this year’s Winter Olympics, FIFA World Cup and U.S. midterm elections, which have collectively pumped billions of seasonal dollars into media owners’ coffers. Those events have also helped offset conditions that have caused many key verticals to scale down their marketing budgets in the second half of the year.
“We were always expecting growth rates to slow down after the historic highs of ’21,” said Vincent Létang, Magna’s executive VP for global market intelligence, who authored the report.
But, he added, with COVID restrictions mostly lifted in the U.S. and many of the supply chain-related issues that plagued the retail economy in 2021 finally getting resolved, Magna’s year-end figures have ended up “where we were expecting to be.”
In September 2021, the IPG-owned media agency suggested in its fall report that the U.S. would see ad spending maintain a healthy growth rate of 12% through this year, thanks in part to a number of high-yield cyclical events, with national spending set to surpass the $300 billion mark by the end of 2022.