Magna: TV Ad Spending On The Upswing For Foreseeable Future

TV ad spending will rise 6.4% to $150.7 billion worldwide in 2010, according to an updated forecast from Interpublic's Magna Global unit. Over the next five years, Magna projects the worldwide TV advertising marketplace will expand at an average annual rate of 5.4%, proving there is still some life in one of Madison Avenue's oldest, most established, and biggest mediums.

While a significantly lower rate of expansion than the forecast Magna issued Tuesday for online media, the growth proves that the TV industry has also emerged from the global advertising recession, at least internationally.

By region, Magna expects Latin America to be the fastest growing part of the global TV advertising economy, expanding at an average annual rate of 8.9% over the next five years, with Argentina leading the growth at an average annual rate of 16.5%.

"In an era where media platforms are becoming increasingly fragmented, television remains the single most efficient means of driving brand awareness among mass audiences, even as TV itself becomes more fragmented," Magna states in the report, which was written by Director of Global Forecasting Brian Wieser. "New distributors of conventional ad-supported television have become more common around the world, and these distributors are responsible for expanded availability of content. Television distribution has increasingly evolved from the world where free-to-air broadcasters exclusively sent their analog signals over radio spectrum to conventional TV sets."

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Magna predicted that neither online video or various Internet-connected TV platforms, or even advanced interactive TV services are likely to be "major factors in television advertising through the foreseeable future."

Domestically, Magna predicted TV ad spending would rise 9.4% in 2010 in North America, and would expand at an average annual rate of 3.8% through 2015.

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