By JEANINE POGGI. Published by AD AGE on 5 April 2019.
U.S. ad revenue growth will slow down more than previously expected in 2019, according to a new study out of Magna, a division of Interpublic Group.
One area poised for meaningful growth in 2019 is over-the-top video, which has seen dramatic consumer adoption and has benefited from viewing from the likes of YouTube and Hulu on connected-TV screens. Magna expects the space to hit $3.8 billion this year and reach $5 billion by 2020. Of course, this still pales in comparison to the $70 billion traditional TV ad business.
While 2019 might see a bit of a slowdown, 2018 turned out to be a more robust year than previously estimated, thanks to a stronger fourth quarter. Magna said domestic ad revenue spiked 9.6 percent to $212 billion, up from Magna’s preliminary estimate of $207.5 billion.
This was the strongest growth rate in a century, Letang says.
Out-of-home and search advertising posted the biggest growth in 2018, with paid search increasing 23 percent to $54 billion, and out-of-home up 4.5 percent to $8 billion.
Out-of-home, which includes things like billboards and TVs at gas stations, is outperforming every other linear channel due in a large part to the massive increase in spending from the technology sector. It’s the only space in non-digital media that has seen consistent growth, averaging 4 percent growth in the last nine years, compared to a 1 percent decline for all non-digital media sales like TV, print and radio.