2010 Ad Spend Flat, Online Up: Forecast

In view of improved expectations of economic recovery, the US advertising market is forecast to fall just 0.1% this year, according to a revised forecast from MAGNA. The reassessment is a slight improvement from MAGNA's forecast issued in December 2009, which projected a 1.3% decline in ad spending.

US advertising revenue is forecast to reach $161 billion in 2010. When incremental revenues from local political and Winter Olympics ads are factored in, spending is projected to reach a total $164.3 billion during the year; political ads will account for $2.74 billion and Winter Olympics ads for $487.5 million.

Below, additional projections issued by Magna.

First Quarter Ad Forecast: Down 3%

The first quarter of 2010 is forecast to be the last quarter of decline for the US ad market during this recession: US media suppliers will collectively generate 3% less advertising revenue on a normalized basis than they did a year ago, even accounting for the very weak economy experienced in early 2009. Industry revenues will drop to $36.8 billion during the quarter, from $38.0 billion in the first quarter of 2009.

These figures reflect a moderating pace of decline compared with the estimated revenue reductions of 7% during the fourth quarter of 2009, and a 15% decline during the third quarter.

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