Pink's Bottom Line on Media, Money and Sports

Global ad spending, retail sales and the US Open men's golf tournament

In today’s newsletter, I discuss global ad spending, retail sales and the US Open men’s golf tournament.

MEDIA: Global Ad Spend Forecast Increases

Magna, a media intelligence and insight company, projects global advertising spending will grow more rapidly in 2021 than it projected just a few months ago.

Magna now says global ad spend will increase 22% on an annual basis in 2021, up from its forecast in March of 6.4% year-on-year growth.

Magna cites the overall economic recovery in key sectors like autos and restaurants that suffered during the pandemic among other factors for the increased ad spend.

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Notably, Magna also says that the US market itself will see ad spending increase by 15% to a record level this year thanks in part to a projected 20% increase in digital ad spend.

Meanwhile, ad spending on traditional linear media will increase in the US by only 3% this year, according to Magna.

As such, while ad spending indeed is recovering and flourishing, digital ad spend in the United States will still continue to show disproportionate strength compared to linear.

MONEY: Retail Sales

Retail sales fell in May compared to April, but they still increased sharply from a year ago, according to a government report released today.

Retail sales slipped 1.3% in May compared to April, but grew 28.1% compared to May 2020, according to that report.

Excluding sales of motor vehicles, though, retail sales fell only 0.7% in May compared to April, according to that report.

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While auto sales likely dipped to supply related issues, it still was an overall disappointing retail sales report.

As consumer spending is the main engine for economic growth in this country, weaker retail sales numbers does not augur well for a sustained economic recovery.

That said, May’s numbers could be transitory and the summer months might show more strength — that’s why the retail sales reports from the next few months will be crucial gauges of overall economic growth in this country.

SPORTS: US Open Golf

The US Open, the third major men’s golf tournament of the year, tees off at the Torrey Pines Golf Course in San Diego on Thursday.

Crowd and sentimental favorite Phil Mickelson, fresh from his win at the PGA Championship last month, is currently +6000 to win the US Open, according to FanDuel Sportsbook.

Spain’s Jon Rahm, currently ranked third in the world, is the favorite at +950 followed by world number one Dustin Johnson at +1500 and world number five Bryson DeChambeau at +1700, according to FanDuel.

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While Rahm certainly has been playing great golf, I suspect that two-time US Open winner Brooks Koepka will win the tournament this year.

Koepka finished second at the PGA Championship this year, and he usually plays his best golf in majors.

One interesting side note — Koepka’s feud with DeChambeau has intensified this year, and should both golfers be in contention on Sunday, that could lead to a fascinating final round.

(Click here to read about the latest incident in the feud between these two golfers.)

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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)