The U.S. advertising market expanded during the first half of 2019, even as concerns rise about a looming economic downturn, MediaPost reports.
The publication reported Thursday that “the U.S. ad market expanded 7.6% during the first half of 2019 and is on track to grow a total of 6.3%, according to revised estimates released today by IPG Mediabrands’ Magna unit.
“That is a significant improvement from the 2.4% U.S. ad expansion Magna predicted back in December 2018, when it released its last forecast.”
Executive Vice President-Global Market Intelligence Vincent Letang is quoted saying in a statement provided with the report: “The U.S. ad market had a great first half thanks to a strong economic environment as well as media innovation and a dynamic technology vertical. Digital media ad sales matured, as expected, but continued to grow close to +20% yoy, while editorial media performed better than expected thanks to a recovery of radio, and OOH in full swing. We forecast an 11th year of growth in 2020 as record political spending will generate an all-time high of $5.5 billion in incremental ad revenue and mitigate the effect of the expected economic slowdown.”
MediaPost adds: “For 2020, Magna is forecasting a more tepid 3.8% expansion in U.S. ad spending, despite the fact that it is expected to be a banner year in political advertising, as well as being an Olympics year.”