June 17, 2011
MAGNAGLOBAL, a division of IPG?s Mediabrands, releases an updated US Media Advertising Revenue Forecast yesterday and the news followed right along the lines of all the public radio companies we've been reporting on. The revised report says $173.1 billion dollars of advertising revenues will be generated in 2011, that's an increase of 2.9% over 2010. MAGNAGLOBAL was forecast an increase of 3.1%. "In light of recent economic reports, excluding the impact of political and Olympic advertising. While we see the disruption from the earthquake in Japan and high gas prices as temporary, the economy still suffers from a depressed housing market, sluggish employment conditions, and fiscal retrenchment at all levels of government. Our previous forecasts had already conservatively assumed a slowdown in the second half of 2011."
Here is more from the report:
"A more pronounced shift to National Mass Media can also be seen in the strength of Network TV and Cable advertising. In total, we expect National TV to grow 7.9% in 2011, up from our previous estimate of 6.5%. Despite upward revisions to National Mass Media, signs of a slowdown are concentrated in Local Mass Media, driven by weakness in Newspapers, Radio and Outdoor advertising. Direct Media (which incorporates Internet Yellow Pages, Paid Search, Lead Generation, Directories, and Direct Mail) has been particularly impacted by sharper declines in Directories and a slowdown in Direct Mail."
"Online advertising growth exceeded our expectations in the first quarter as the share attributed to national media (primarily reflecting Digital Display and Online Video) was significantly higher than recent trends would have predicted. Though some premium display publishers may have seen a slowdown stemming from the broader economy, National Online advertising overall benefited significantly from strong momentum in online video and social media as large national advertisers begin to invest more in building brand awareness online."
"Many of these advertisers are also investing more in Paid Search, allowing Direct Online Media to outperform our expectations. We believe recent improvements made in search quality have benefited the sector and many more monetization opportunities exist in social media. Online advertising, and Paid Search in particular, was likely helped by continued growth in e-commerce, which accelerated during the first quarter by 17.5% compared to the prior year period. For 2011, we now expect $30.1 billion in online advertising, up by 15.6% from 2010 levels."
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