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BizReport : Advertising archives : January 22, 2010

Magna: Expect an ad rebound in 2010

With the SuperBowl only a few days away and the 2010 Winter Olympics mere weeks away, advertisers are expected to push more dollars into the ad space. According to a new forecast from Magna Q1 2010 will be the last recessionistic quarter for marketers - at least for now.

by Kristina Knight

Magna forecasts that ad revenues will return to normal levels, perhaps evening out with 2009 numbers. Before the forecast revision, experts expected ad revenues to decline by at least 1%. Looking ahead, the forecast suggests an compounded annual growth rate (CAGR) of just over 2% through 2015.

What is pushing the increase in ad dollars? Sports and political advertising, primarily. As the US heads into another election year, politicians are expected to sink about $2.7 billion into the advertising marketplace, a 15% increase over the election years of 2008 and 2006. And, with another Olympic year, brands will take advantage of sports programming by about $488 million in incremental revenue.

James Oppenheim, Chief Marketing Officer of semantic advertising company Peer39 said, "It is very reassuring to hear that Magna has confirmed what Peer39 has already seen in the market - the recessionary trends of the online advertising world have ended, and there is a renewed interest in shifting advertising dollars to the online sector."

The biggest increases will be seen in the online realm with a 12% increase. By the way, online advertising revenues are expected to grow by nearly 11% (CAGR) through 2015. In a related report, BIA/Kelsey reports that the biggest trends, for local marketers this year, will be localized mobile and interactive mediums as well as broadcast media.

Neal Polachek, president, BIA/Kelsey said, "As the economy inches toward recovery and digital media continue to gain ground aided by mobile and social momentum, 2010 will certainly be a pivotal year to track."

Tags: advertising forecast, advertising trends, BIA/Kelsey, local ad spend, Magna, online advertising

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