Global Advertising Revenues to Grow by 5% in 2018
Decent US performance (+4.9%) but Mostly Due to the 2018 cyclical events
In its latest report on global advertising market trends, released December 4, 2017, MAGNA forecasts media owners’ net advertising revenues to grow by +5.2% to $535 billion in 2018.
This will be an acceleration from 2017 (+4.1%) mostly due to the impact of cyclical drivers in 2018 (FIFA Football World Cup, Winter Olympics, US Mid-Term elections). Neutralizing the five billion dollars of incremental ad spend generated by those cyclical events, the 2018 growth would be +4.1%, compared to +5.1% in 2017.
Digital and mobile advertising sales will grow by +13% in 2018 to reach $237 billion or 44% of global advertising revenues. They will comprise 50% of total advertising sales by 2020.
In the US, advertising sales will grow by +5.0% in 2018 to reach $195 billion. Neutralizing the incremental ad sales generated by even-year events (+$3.7bn), 2018 growth will only be +3.2% compared to +3.9% in 2017 and +5.9% in 2016.