December 6, 2011: Magnaglobal has revised its revenue forecasts for media owners worldwide, and is now projecting 4.7 percent growth in 2011, to $427 billion, downgraded 0.5 percent from its earlier forecast. For 2012, the firm is predicting 5 percent growth, to $449 billion, a 1.5 percent downgrade from earlier predictions. Additionally, Magnaglobal projects that Internet will become the second-largest media category in 2011, and will reach 20 percent global market share in 2012.
Global ad revenue growth is largely being driven by emerging economies, with Latin America showing the strongest growth rate in 2011, at 13.2 percent. North America, by contrast, showed 3.1 percent growth.
Among media categories, television "continued to show strength in 2011," says Magnaglobal, and maintains a 41 percent market share worldwide. Radio grew by 2.2 percent, while newspaper revenue was down 2.4 percent. Meanwhile, Internet media increased 16.9 percent for the year, to $78.5 million, led by a 15 percent gain in display ads and a 19 percent surge for paid search advertising.
Says Magnaglobal, "Overall, coming after a strong 2010 and in a poor macro-economic context, media suppliers displayed a resilient performance in 2011. But the global market is barely back to where it was in 2007 ($423 billion in constant USD), and still smaller in the case of Western Europe (2007: $112 billion, 2011: $106 billion). This reflects that media costs that are still low from a historical perspective."
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