With 2013 rapidly approaching the halfway mark, ad industry forecasters are updating the guidance they issued earlier this year. MagnaGlobal reports that the global ad market will increase by 3% this year to $486 billion. This is a slight deceleration from last year’s pace, and while the U.S. doesn’t represent a top growth market, some media companies will record revenue increases this year.
In the U.S., MagnaGlobal is looking for a 0.4% increase which would bring ad market spending to $155 billion. Formats which will experience drops this year include TV (-2.8%), because of the lack of big events such as the Olympics and national political campaigns, print newspapers (-6.8%), and print magazines (-6.7%). While radio spending will “remain flat”, out-of-home operators can expect a boost of 3.5%. The top growing category will be digital with an 11.5% increase. The mobile format will be the key driver with a 61.7% increase which translates to spending of $5.4 billion.
Analysts expect a much better picture for 2014 in the U.S. with an upward revision from the previously forecast 5.4% to 5.9%. This optimistic outlook is linked to continued economic recovery and mid-term political elections.
MagnaGlobal finds 2 aspects of digital advertising noteworthy. First, more digital display advertising is being done programmatically to take advantage of the benefits of real-time bidding. This practice is expected to rise from 17.4% to 48% of the display ad revenue between now and 2017. In addition, the forecasting company is now breaking out social media spending as a line item. Globally, the format will increase from $8.2 billion (1.7% of the total) to $24.3 billion in 2018.
If you’re buying digital display advertising have you been working with a network to use real-time bidding?