The U.S. advertising market will continue to have a strong year — thanks to strong first-quarter gains, especially from NBC’s Sochi Olympics. MoffettNathanson Research maintains its estimate for the U.S. ad market, climbing 6.2% this year to $149.4 billion. Internet display and search advertising will grow 15%, with total TV spending — the biggest ad spending revenue platform, with about a 50% share — 6.6% higher.
A new forecast from Magna Global predicts that ad revenue will increase by 6% this year, up from its December prediction of 5.5% growth. Magna credits the improving economy for the bump in its forecast. Vincent Letang Magna EVP, says that the unemployment rate continues to drop while important indicators like industrial production are growing. Those things increase advertisers’ confidence in the economy.
Three new ad spending forecasts released Sunday night are pegging ad growth next year partly on the Winter Olympics, the World Cup and the mid-term elections in the U.S. It’s the first time in 20 years that a new platform is expanding overall ad spending without cannibalizing other media, one forecast said.
Wells Fargo analyst Marci Ryvicker is raising her estimates for political ad spending from $4.9 billion to $5.2 billion. She upped her forecast based on television spending in August, which surged 77% on local TV to more than $171 million, compared to July. Local, network and cable TV are set to bring in $3.37 billion this election, boosting television revenue by more than 23% compared to last year. Local TV, at 54%, has the largest share of the three segments and is estimated to come in at $2.8 billion.