Interpublic’s Magna forecast unit reversed course on a downbeat projection and now calls for an increase in ad spending in 2010, bolstered by the Olympics and local elections.
Here’s the chart. It’s a sight for sore eyes.
MediaPost has a thorough story on the dynamics driving the forecast. Local is forecast to continue to decline, off 5% in 2010 after a 22% decline in 2009. Newspapers will lose another $2.6 billion in local ad spending, Magna projects.
On the national front, magazines will be down again as well, off 7% versus a 20% decline in 2009.
Online advertising should experience a rebound 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%
The long-term outlook has improved as well. Brian Wieser, director of Global Forecasting:
Our longer-term forecasts have also been modestly increased to reflect higher confidence in economic recovery. MAGNA now forecasts total normalized media supplier advertising revenues will rise by a compounded annual growth rate of 2.3% between 2010 and 2015.
Here’s the complete forecast, broken down by segment.
