Media buyer MagnaGlobal says that while economic challenges persist, it expects national TV advertising to increase by 6.8% in 2011.
The new forecast is an increase from an earlier forecast of a 5.8% gain.
Overall MagnaGlobal says ad spending rose 3.1% in 2010, up from an earlier estimate of 2.8%, and will be up a similar amount in 2011, excluding the impact of the Olympics and the elections. Including the impact of politics and the Olympics, total advertising will grow by only 1.9%, compared to 4.3% in 2010.
Some traditional media are weakening, including newspapers, magazines, directories, and direct mail. Gaining ground are digital, broadcast and outdoor media.
"Interest in mobile advertising has been catalyzed among large advertisers over the past year, and we expect growth of 60.1% during 2011. Online video has achieved meaningful scale, and is now commonly used by a wide range of advertisers; growth should approximate 26.8% this year. Emerging outdoor media will also outpace the rest of the outdoor industry as inventory is increasingly monetized; we expect the sub-sector to grow by 17.4%," the MagnaGlobal report says.
"Alongside these trends, traditional TV and older forms of digital media will continue to grow rapidly. We expect TV advertising to rise by 6.3% on a normalized basis during 2011 and digital display to grow by 11.6%. Paid search will also fare well, rising by 11.1% during the same period," the agency says.
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