MagnaGlobal this week revised its 2010 U.S. media forecast, noting that it now expects suppliers will generate $169.9 billion dollars of advertising revenues over the full year.
The new outlook pegs growth in the advertising economy to grow by 2.1 percent versus Magna’s earlier forecast of 1.6 percent year-over-year improvement. Both figures exclude political and Olympic ad spend. With the Games and election spending thrown into the mix, ad revenue should be up 3.4 percent in 2010.
Led by national cable, television will remain the strongest media sector, accounting for 40 percent of the overall pie and growing 10.4 percent to $56.4 billion. Cable ad sales dollars are expected to increase by 4.9 percent versus 2009, adding up to some $35.4 billion. Magna sees local TV growing 9.6 percent to $18.5 billion, rebounding from a 13.6 percent decline a year ago.
Total online advertising continues to grow at a rapid clip, with Magna projecting 11 percent growth in the sector, to $25.3 billion. Meanwhile, magazine growth will be muted (0.5 percent to $15.7 billion), while radio is expected to climb 5 percent to $15.1 billion.
Over the long haul, Magna anticipates 3.6 percent annualized growth between 2010 and 2015, up slightly from its earlier forecast (3.5 percent).