IPG Mediabrands’ Magna unit has revised its 2020 advertising outlook for the US.

In December last year, Magna predicted the market to grow 5.7 per cent in 2020. This has now been revised to a 2.8 per cent decline – marking a 8.5 per cent downturn.

“This new market scenario is based on Magna’s statistical model fuelled by 40 years of data, and by the latest forecasts from macro-economists, who anticipate real GDP shrinking by -1 per cent to -4 per cent this year, compared to a forecast of +2 per cent pre-coronavirus. 6,” Magna says in its revised report.

“At this stage, the total market decline anticipated (-3 per cent or -$6.2 billion vs. 2019) remains less severe than the decline experienced in 2008-2009 (-20 per cent or -$33 billion vs 2007), mostly because of the weight and resilience of digital advertising today.

“However, at this stage, both the macro-economic outlook and the corresponding advertising forecast present a high degree of uncertainty and significant downside risk for 2020.”