Ad Spending Expected To Rise Says MagnaGlobal, With Digital And TV Seeing The Most Growth
May 3, 2012 at 3:55 AM (PT)
MAGNAGLOBAL is expecting advertising to show a slight increase in overall spending this year, largely based on a rise for digital. MEDIAPOST reports, "MAGNAGLOBAL says now core media [which includes radio] -- excluding political and Olympic spending as well as direct marketing -- will grow 2.2% in 2012 to $149 billion, up from a previous 2.0% projection."
MAGNA described the U.S. economy is in a "fragile" state, and wrote "the increase is entirely due to an upward revision in our digital media forecast, following a strong 4Q11 and a strong 1Q12."
TV is the one traditional media MAGNA sees experiencing growth, with political advertising and the Olympics driving that growth. MAGNA estimates that some $2.5 billion in political advertising will be spent in 2012 mainly on local television stations. Overall local station ad revenue will grow by 10.4%. But just looking at core media for TV stations -- without political and Olympic advertising -- local TV stations will just rise 0.8%," notes MEDIAPOST.
National and local Internet media is forecast to rise 12.2%. Mobile advertising expected to rise 53.1% to $2.4 billion, and online video will be 24.0% higher.