US ad revenue to grow 1.6% in 2010
Magna’s latest US advertising revenue forecast predicts growth of 1.6% during 2010, an upgrade from its previous prediction of flat year on year growth.
In total, Magna expects media suppliers to generate $164.5 billion dollars of advertising revenues during 2010.
It said it is forecasting the 1.6% rise – excluding political and Olympic TV advertising – on the back of continued improvements in the economy and an increased likelihood of sustained growth in the near-term.
It added that as expectations for the broader economy have improved over an extended time-frame, it is also increasing its long-term forecasts, and now expects growth to average 3.5% between 2010 and 2015, up from 2.3% previously.
Within this forecast, television remains the largest advertising platform in the US, generating $56 billion in ad revenues in 2010.
Online advertising will be the fastest growing medium this year, with paid search rising 16.8%.
Local media is also likely to perform better then previously forecast, said Magna.
ZenithOptimedia upgraded its UK and global adspend growth forecasts last week, predicting UK growth of 1.3% this year and global growth of 2.2%.
This followed the release of Carat’s upgraded UK and global adspend forecasts at the end of March, predicting 2.9% growth in the UK this year, with growth of 4.2% expected in 2011.