TV and Online Ad Growth Outlook Confirmed by MAGNA

Along with the good economic news boosting U.S. markets this week, MAGNA, a division of IPG’s Mediabrands, added its own positive forecast. MAGNA had previously expected the U.S. ad market to remain flat in 2010. But the spending history in the 1st quarter caused the forecaster to predict an ad spending total of $164.5 billion in 2010. This level of spending would mark a 3.0% growth rate for the industry, an improvement over earlier projections.

MAGNA analysts expect TV will continue to reign as the largest supplier of media space in the U.S. If this media form brings in the $54.8 billion predicted for the year, it will have achieved a 10.5% growth rate over 2009 levels. But online platforms are nipping at the heels of the TV industry. MAGNA does not expect mobile advertising to be a serious contender in 2010. However, “ the sustained innovation and rising levels of internet access” mean that online advertising will account for as much as  21.9% of all expenditures by 2015.

On another note, MAGNA indicated that local ad markets are also improving. Because 2010 is an election year, local TV and radio stations will benefit from some of the $2.7 billion in spending by that sector.  In addition, auto dealers have been advertising again. This welcome report also noted that outdoor and radio markets are improving as the rising tide is apparently lifting all boats.

[Source: MAGNA Advertising Forecast: Recovery Has Arrived. MAGNA. 13 Apr. 2010. Web. 15 Apr. 2010] 
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.