Worldwide advertising revenue growth is expected to decline slightly this year, dragged down by more traditional mediums like television and print and a slowdown in the U.S. and U.K. Excluding cyclical events like last year’s Olympics and the U.S. elections, media owners’ ad revenues are expected to increase 4.7% this year globally, compared with 4.9% growth in 2016, according to the latest forecast from Interpublic Group’s ad buying group Magna .
The company’s top forecaster — Adam Smith — provided some headline numbers for 2015 ad spending from a forthcoming new report during a conference call with analysts on Wednesday. GroupM now believes that total global spending growth for the year will be 4%, down from the 4.9% (to $538 billion) the firm had forecast earlier.
After two years of recession and five years of recovery, the worldwide media economy is finally getting back on track. Global ad spending finally will rise above its 2007-2008 pre-recession levels next year for the first time, according to a new forecast from GroupM. Worldwide spending will hit $534 billion this year, up 4.5 percent over 2013. In 2015, that will increase to $560 billion, up another 5 percent.
Telecommunications advertising unsurprisingly continued to lead the sectors for growth in year-to-date advertising spend (+6.6%). Within the media sector, broadcasters spent 8.3% more in ad spending for 2012 to date. This jump may be in part due to an increase in broadcasters advertising on their own channels, as they promote their content and fill spots not sold to other advertisers.
Interpublic Group’s MagnaGlobal has downgraded its ad revenue growth forecast for 2012. The firm, part of IPG’s Mediabrands unit, now predicts global ad revenues will rise 4.8% to $480 billion, which is two-tenths of a percentage point less than its December 2011 forecast.
Ad spending worldwide in 2012 will grow 4.8% compared with last year, according to a quarterly forecast from ZenithOptimedia, part of the Publicis Groupe. That is a bit higher than the most recent forecast for this year by ZenithOptimedia, made in December, which called for a gain of 4.7 percent.