MAGNA Raises US Ad Forecast, OOH to Grow

Courtesy of the OAAA

The US ad market is projected to reach an all-time high this year, generating $197 billion in revenue. Up 5.5 percent, this is a 2.7 percent acceleration on last year’s growth, and stronger than MAGNA’s earlier forecast of 5 percent.

OOH is expected to grow 2.1 percent to $7.9 billion in 2018. Across OOH segments, street furniture and transit will drive OOH growth, as they increase 10 percent and 7 percent, respectively. Digital OOH sales will grow by 10 percent in 2018 and 14 percent in 2019, driven by new inventory.

OOH remains the only traditional media to grow. Excluding cyclical events such as the WInter Olympics, national and local TV is forecasted to be down, newspapers will decline by nearly 20 percent, magazines by more than 15 percent, and radio by 4 percent.

Digital advertising is growing faster than MAGNA previously forecasted. Formats like search, video, display, and social are expected to bring in 50 percent of total ad sales this year, one year earlier than previously anticipated. Digital ad sales are projected to grow by 14 percent this year to $97 billion, with almost 60 percent of that coming from mobile.

Nearly every digital format saw growth last year except for static banner ads, which shrank by 9 percent due to ad blocking, lower inventory, and stagnant pricing, according to MAGNA. Digital growth was entirely concentrated on mobile, which grew 40 percent to $48 billion. Non-mobile impression revenues on desktop declined by 2 percent.

Digital media growth is expected to remain at or near the double digits until at least 2022.

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