MAGNA Hikes Ad Growth Outlook After Robust H1 Spend.

Global media owners’ ad revenues will grow 10% this year to reach $927 billion.

That’s according to the summer update of “Global Ad Forecast” from MAGNA, which is raising its 2024 growth forecast after a stronger-than-expected Q1 ad market (+12%).

It sees expansion in the U.S. ad market of 10.7% this year to $374 billion, with Traditional Media Owners ad sales to grow 4.4% to $111 billion, while DPP ad revenues will expand by +13.5% to $263 billion.

Based on MAGNA’s analysis, “advertising revenues were much stronger than expected in the first quarter of 2024,” says Vincent Létang, EVP, Global Market Research at MAGNA, and author of the report. “Coupled with some improvement in the macro-economic outlook, this leads us to increase our full-year global advertising growth forecast from +7.2% (December 2023 update) to +10%.”

Létang said all categories of media owners are faring better than expected so far this year, including traditional media owners.

The firm includes the U.S. and France (+11%) among 2024’s most dynamic ad markets. Spain (+14%) is tops, followed by India and the UK (+12% each), with Automotive and CPG/FMCG brands among the fastest-growing ad spending verticals in 2024.

“The U.S. remains the largest and most intense ad market in the world with advertisers spending $1,100 per consumer in 2024; it’s 8 times more than the global average ($160), ten times more than China ($110) and a hundred times more than India ($10),” the report says.

The updated forecast also bodes well for Traditional Media Owners (TMO) — from TV, radio, publishing and OOH industries. They’re forecast to see global advertising revenues grow 3% to $272 billion — a considerable improvement vs. 2023 (-4%).

In the U.S., TMOs’ ad revenues will climb 4.4% to $111 billion, with non-cyclical revenues falling 2%. Local TV will garner more than 60% of the $9 billion of incremental ad sales driven by political advertising, the report says.

MAGNA said it still expects the 2024 election campaigns to generate $9 billion in incremental ad revenues for U.S. media owners this year. That’s an increase of 10% vs. 2020.