Media Finance Outlook Q1 - Q2

“Overall sentiment is bullish, with a number of large media accounts in review this year. Increases in spending from hospitality and travel could arrive in late Q2 as those sectors inch forward.”

Executive Summary:
Expectations of inflation loom as the US economy is primed to expand 6.5 percent in 2021, which could bring about a rise in rates. All indicators are aligned with advertising media spending forecasts for 2021; roughly 3.5% fueled by growth in digital and streaming. Activity around ABL finance facilities is increasingly strong while rates remain low.

Indicators of Strength:

• Bloomberg: “Twitter’s 2021 outlook is supported, in our view, by growing user engagement and prospects for increased digital ad spending.”

• NASDAQ: “3 Stocks Set to Gain on a Likely Rebound in Ad Spending.”

Indicators of Weakness:

• FT: “US long-term interest rates hit highest in a year on stimulus impact.”