IPG's Magna Global has revised its 2010 U.S. media forecast, noting that it now expects suppliers to generate almost $170 billion in advertising revenue this year.
The new outlook pegs growth at 2.1 percent vs. Magna’s earlier forecast of 1.6 percent year-over-year improvement. Both figures exclude political and Olympic ad spending. With the Vancouver Games and election spending thrown into the mix, ad revenue should rise 3.4 percent in 2010.
Led by national cable spending, 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 dollars are expected to increase by 4.9 percent vs. 2009 to $35.4 billion overall. Magna sees local TV growing 9.6 percent to $18.5 billion, rebounding from a 13.6 percent decline a year ago.
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 annual growth between 2010 and '15, up slightly from its earlier forecast of 3.5 percent.
See also: "Ad Spend Up 12.5% in First Quarter"