After a few months of slower growth, digital-media advertising revenue has resumed its double-digit climb — with social media, search and internet radio among its strongest performers. Digital-media advertising was up 19% in July, according to Standard Media Index, which culls booking data from 80% of the major media agencies.
Though the media economy has seen great recovery from its struggles during the recession, it still has some ways to go before things return to pre-crash levels. Growth continues to come in increments as opposed to bursts. The latest forecast from ZenithOptimedia reminds us of so many updates over the past several years. The London-based agency is raising its outlook for 2014, but only by a couple of tenths of a percentage point. ZenithOptimedia now forecasts that U.S. ad spending will grow 4.9% this year, up from its December forecast of 4.7% growth.
The outlook for agency growth this year is moderately brighter than the growth achieved last year. Organic revenue growth, which excludes the impact of acquisitions and currency fluctuations for the major industry holding companies, is expected to average 5% in 2014, versus the estimated 3.3% gain for 2013.
Boosted by an unexpectedly strong first half for national advertising, the media economy is picking up some steam. A new forecast from Pivotal Research Group raises the outlook for 2013 ad spending, following months of mixed news about the U.S. economy. Ad spending will grow at a rate of 1.8% this year, up from a projection of 1.4% in April. That’s also ahead of the 1.2% growth rate for 2012.
The ad economy is poised for a boom in the fourth quarter — that is, if you are in the local TV business in a swing state. You’re not? Well, fasten your seat belt. You’re in for a bumpy ride for the remainder of the year.
Ad spending grew 0.9% in the second quarter of the year, after expanding 2.6% in the first quarter, according to new Kantar Media research.
A new “business climate” survey of communications executives from consultant KPMG reports that there is less optimism about the economy and employment in the sector going forward. On the plus side, most of those surveyed — nearly three-fourths — predicted some revenue growth for their firms in the next year. And 44% said that digital-related products and services would be the key drivers to overall revenue growth.
Marketers in 2011 will boost U.S. ad spending 2.8%, down slightly from 2010’s 3.2% growth rate, according to the average of three major media-agency forecasts. Worldwide ad spending will grow 5.3% in the new year, below the 5.9% growth seen in 2010, according to the average of three forecasts from Interpublic Group of Cos.’ MagnaGlobal, Publicis Groupe’s ZenithOptimedia and WPP’s Group M.