Magna Research Adjusts Ad Revenue Forecast Reflecting More Growth This Year And Next
Ad Age is reporting forecasted media net advertising revenue growth of 4.1 percent this year and 6.2 percent in 2020 based on the latest report from Interpublic Group of Company’s Magna. That’s a pleasant surprise from the projected growth of three percent and 5.8 percent respectively, and Ad Age says Magna is optimistic that the U.S. ad market will continue to grow even more in 2020.
The forecasted growth is attributed to record levels of political ad spending that is expected to generate $5 billion and cancel out any downturn caused by an economic slowdown.
The article quotes the Magna report as saying that personal consumption is expected to remain strong in 2020 with growth of more than four percent despite the forecasted slowdown in the gross domestic product from 2.3 percent this year to 1.9 percent in 2020. The economic slowdown could be felt in spending in key markets including automotive, retail and finance, but 2020 is expected to be the strongest year in the four-year cycle of events that drive extra ad spend and incremental ad revenues.
Net ad revenue for 2020 is forecasted to reach $235.4 billion up from $221.6 billion this year, according to Magna research.