2014 U.S. Ad Outlook Improves

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 revenuechartwhile 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?

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.