DIGITAL ADVERTISING SOON TO GRAB 50% OF ALL AD DOLLARS
In its Latest Advertising Forecast Report Published Today, MAGNA Expects the US Ad Market to Reach a New All-Time High in 2018. Media owners will collect $197 billion in net advertising revenues (NAR) – a growth of +5.5% over 2017. This will be driven by a strong economic environment and incremental ad spend around cyclical events. This is an acceleration on last year’s growth (+2.7%) and stronger MAGNA’s previous forecast of +5.0%.
More insights include:
- Digital To Control Half of All Ad Dollars. Digital ad formats (search, video, display, and social) continue to account for the lion’s share of advertising growth. MAGNA expects them to attract 50% of total advertising sales this year, one year earlier than previously anticipated.
- MAGNA noticed the Emergence of a “Vertical Divide” in 2017. TV-centric verticals like CPG, Pharma and Movies have remained mostly loyal to traditional linear television in 2017, while Digital-Centric verticals (technology, retail, finance…) continue to shift their budgets further away from TV, into digital formats.