Magna Upgrades U.S. Ad Revenue Forecast

Interpublic research arm Magna has upgraded its U.S. ad revenue forecast and now predicts that media owners net advertising revenues will grow 6.3% to $179 billion in 2016, the strongest growth rate since 2010.

The research unit had previously forecast 6.2% growth for the region, but made the upgrade following a strong first half and despite lower political ad-spend expectations.

Not counting the incremental ad sales generated this year by political and Olympics, ad market growth would be 4.4%.

In 2017, growth is expected to slow to 3.5%.

Magna reports that digital media ad sales will grow by 15% this year and 12% next year, while traditional media ad sales will decrease by 1.5% this year and 2.2% next year.

Digital advertising sales this year will equal TV ad dollars for the first time with both generating $68 billion, and a market share of 38.5%.

Social media ad sales are expected to rise 44% to nearly $16 billion, of which about $2.2 billion will be for social video ad formats.

National TV ad revenues are predicted to grow 3.2% this year, excluding political and Olympics, with growth slowing to 1.5% in 2017.



1 comment about "Magna Upgrades U.S. Ad Revenue Forecast".
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  1. Ed Papazian from Media Dynamics Inc, October 13, 2016 at 6:01 p.m.

    Our own projections for branding campaigns  have TV in the lead with about $67 billion and digital trailing far behind with only $12-14 billion. However, digital ad spend for branding campaigns is, indeed, increasing at a faster rate than for TV. A cautionary note: our projection assumes that digital ad spending is for branding ads with a 100% "visibility"factor---just like TV. If that is not the case for many advertisers, then TV's lead in "effective" dollars spent is even greater.

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