MAGNA GLOBAL ADVERTISING FORECASTS: US AD SALES WILL GROW BY +2.2% THIS YEAR, ACCELERATING TO +3.3% IN 2016

US media owners advertising revenues grew by +1.6% in the first half across all media categories, excluding Political and Olympic (P&O) effects, confirming soft ad sales from television, radio and print. Digital Media (+16%) and Out-of-Home Media (+4%) were the only categories to show ad sales growth. While Digital Media remained dynamic, growth is increasingly contrasted between social and video formats (from +30% to +50%), search (+10%) and banner display (+4%). Reaching $66 billion in ad revenues, digital media (all formats) will surpass television (all formats) in 2016 to become the #1 media category, one year earlier than previously expected.

MAGNA GLOBAL Forecasts Global Advertising Revenues to Grow by +3.9% to $513 billion in 2015

Globally, media owner advertising revenues are forecast to grow by +3.9% in 2015 to $513 billion.

This is nearly one point lower than our previous forecast (+4.8% in Dec. 2014) and represents a slowdown from 2014 (+4.9%). The nearly one point slowdown in 2015 is largely attributable to the absence of even-year events that generated extra ad spend in 2014 (Winter Olympics, US Elections, FIFA World Cup).