Magna forecasts 4.2% ad revenue growth
Magna Global’s latest worldwide advertising forecast predicts that ad revenues will grow 4.2% to $377 billion in 2010, upgraded from its previous forecast of 2.4%.
Magna’s compound annual growth rate (CAGR) for the global industry is 5.1% over the next five years, compared to expectations of 4.8% it forecast late in 2009.
Video retains its dominance around the world, it added, with more than 40% of advertising, a total of $151 billion, relying on traditional TV.
Television is growing in all regions, up 5.4% on average through 2015, while online advertising is expected to overtake newspapers as the second largest ad medium by 2013, totalling $103 billion in 2015.
However, newspapers can only expect modest growth – up 1.8% in constant currency terms over the next five years, although this is not that bad when considering the sustained declines in many mature markets.
Earlier this month, GroupM revised up its 2010 adspend forecast from zero growth to 4%, saying that TV advertising would provide a big boost, with a year on year increase of 11.6%.
And ZenithOptimedia’s latest UK and global adspend growth forecasts predict UK growth of 1.3% this year and global growth of 2.2%.