Pink's Bottom Line on Media, Money and Sports
Global ad spending forecast, a global economic growth forecast from the IMF and the NBA Draft
In today’s newsletter, I discuss a global ad spending forecast, a global economic growth forecast from the IMF and the NBA Draft.
MEDIA: Global Ad Spending Forecast
Global advertising and public relations firm dentsu forecasts much healthier ad spending this year than it had originally forecast.
According to dentsu’s recently released June 2021 Ad Spend report, the company now forecasts that overall ad spending will increase 10.4% in 2021 compared to 2020 — that’s much stronger than dentsu’s forecast of 5.8% growth that it made at beginning of the year.
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Notably, dentsu forecasts that digital ad spending will be particularly strong, up 15.6% in 2021 compared to 2020.
Additionally, dentsu says that markets in the United States, China, the United Kingdom and Australia will lead that global ad spending recovery.
All of that insight from dentsu reveals a nice global ad spending rebound from last year — and it shows once again the unrelenting strength of the digital ad market.
MONEY: Global Economy
The International Monetary Fund (IMF) is forecasting that the global economy will grow 6% this year — that forecast is unchanged from one it made in April.
However, the IMF says that while it still forecasts 6% global growth overall, it now expects the composition of that growth to change.
Specifically, the IMF now forecasts a stronger performance from developed economies and a weaker performance from emerging economies in 2021 than it had forecast in April.
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It is another indication that an economic growth gap between developed and emerging economies appears to be widening.
That gap also is likely directly correlated to the availability and delivery of coronavirus vaccines.
As such, it seems that until there is widespread availability of coronavirus vaccines in emerging economies, global economic growth will remain uneven.
SPORTS: NBA Draft
The NBA Draft will take place this Thursday at the Barclays Center, home of the Brooklyn Nets.
While there are some terrific players available this year, it doesn’t appear that any individual player will significantly alter a franchise if he is drafted.
As such, look for a number trades either in the next 48 hours or during the draft itself as I expect that many teams will look to unload draft picks in exchange for proven veteran players.
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Specifically, I expect Golden State, which holds the 7th and 14th picks in the draft, to make a deal.
The Warriors are perhaps one strong veteran player away from contending for the NBA’s Western Conference title.
In any case, I think the approach by many teams to the NBA draft has fundamentally changed in the past two years — it appears that it’s becoming less important for teams to stockpile draft picks than it is to build out an existing roster with established veteran players.
Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)