Magna 2010 Ad Forecast: Q1 Will See Last of Declines

January 20, 2010

This article is included in these additional categories:

Financial Services | Magazines | Media & Entertainment

Just a few months after predicting that US ad revenues would decline by 1.3% in 2010, Interpublic’s Magna unit has revised its projections, and now forecasts (pdf) that advertising revenues will be essentially flat this year, down just 0.1% from 2009.

In its January 2010 forecast update, Magna said it expects advertising revenue will be $161 billion, excluding the effects of the Olympics and local elections, MediaBuyerPlanner writes. Including Olympics and election spending, the US ad economy will rise 1.4%. The first quarter of 2010 will be the final quarter of decline during this most recent recession, according to Magna.


U.S. advertising fell 15.5% in 2009, Magna estimates.

Online to Have Strong Year

Magna predicts that online will have a relatively strong year. In 2010:

  • Direct online ad spending will jump 12.2%
  • National online ad spending will grow 4.0%
  • Local online spending will grow 3.7%

Additionally, national TV is expected to rise 6.2%. The Olympics are expected to add $487.5 million to the US ad economy; election spending will add $2.743 billion.

Direct mail is expected to be up 4.1%. Print, however, will have another challenging year: newspapers will drop 10.7%, while magazines will slip an additional 7.3%. Those drops, however, are less significant than the plunges of 27.2% and 19.6% for newspapers and magazines respectively in 2009.

Magna also upgraded its longer-term forecasts, predicting that ad dollars will grow by a compounded annual growth rate of 2.3% between 2010 and 2015, up slightly from the 2.1% predicted in December.


Explore More Articles.

Brand… Performance… Both?

Brand… Performance… Both?

Some 77% of CMOs agree that they need to recommit to brand. But 75% also agree that they need to double down on performance.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This