Magna forecasts 6% global advertising growth in 2010

Magna said that in US Dollar terms, on a global basis media suppliers’ advertising revenues declined by 15% during 2009 as the economy faced near-collapse. A rebound is predicted for next year, when advertising should grow 6%, on pace to sustained 5% growth for each year through 2015.

In recent years, slow growth in mature, developed economies (especially Europe and the United States) has encouraged an international focus among established players in the media industry, said Magna.

Growth in rapidly industrializing economies such as the BRIC markets (Brazil, Russia, India, China) and other countries including Poland and Indonesia now contribute significantly to the total size of the worldwide advertising-supported media industry, which in US Dollars will have grown by 62% on a nominal basis between 2000 and 2015.

Magna’s latest global forecast maintains consistency in its definitions of media across countries, and so uses the term “core media” (TV, search, other online media, newspapers, magazines, radio and outdoor) to refer to globally similar media types, allowing it to make better like-for-like comparisons across countries.

Latin America fell by only 5% in USD during 2009, led by a strong Brazilian advertising economy. The region should rise by 12% in 2010, and continue with robust growth over the next five years, up an average of 7% for each year through 2015. EMEA (in USD) will recover in 2010 to grow by 6%, up from a 20% decline in 2009. Over the following five years, growth in EMEA is expected to continue at a 4% pace.

Including both Canada and the United States, North America is expected to post 1% growth in 2010, up from a 16% decline in 2009, and on pace to sustained growth rates of 2% over the next five years.

Within media, online advertising will account for 21% of global core media, with much of the growth coming at the expense of print.