In its latest report on the global advertising marketplace, covering 73 countries, MAGNA GLOBAL estimates that media owner advertising revenues grew by +3.2% in 2015 to $503 billion. This is lower than the previous forecast (+3.9% in June 2015) and represents a slowdown compared to the 2014 growth (+4.9%).
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.
Digital media buying is being revolutionized by programmatic buying technologies. Over the 41 countries analyzed by MAGNA GLOBAL in its new report, display and video inventory transacted through programmatic methods will reach $14.2 billion globally this year (+49% compared to 2014).
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).
According to MAGNA GLOBAL, US Media Suppliers’ advertising revenues grew by +3.0% in 2014 (to $164 billion), a modest performance in an even-numbered year.
The growth was just +1.6% when factoring out non-recurring “P&O” ad revenues.
This was the smallest growth in six years, since the great recession of 2009.