US ad sales on track to top $600MN in 2019 | Media Analysis | Business | News | Rapid TV News
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Net advertising sales in the US will be up 5.1% to reach $600 billion in 2019, excluding special events, according to a forecast from Magna.
Olympics 18 june 2019
Linear TV ad revenue is forecast to decrease 2% to $175 billion in this non-Olympic year; but by taking the US out of the equation, it would be up 1% in 2019.

Magna said that digital advertising sales growth slowed in the first quarter of 2019 to 16%, but this sector should finish 2019 up 13%. Digital ad sales this year will represent more than half of global ad sales for the first time this year, reaching $304 billion, or 51% of the total.

Mobile ad sales will grow by 24% in 2019 according to the agency, to account for 68% of total digital advertising; while desktop-based ad revenue will shrink 3%, due to declining usage and ad blocking.
“Global ad spend continues to grow as the economy remains strong in key markets, but two factors are slowing down the growth rates in 2019: One is cyclical (the lack of major events in 2019, following a record year in 2018) while the other is structural: digital ad formats maturing as they now account for more than half of total advertising sales,” said Vincent Letang, EVP of global market intelligence at Magna. “However, product innovation (smart homes, cloud services, OTT, 5G) and marketing innovation (direct-to-consumer brands) will continue to drive ad spend growth this year and next.”

For 2020, ad sales are expected to grow 5.8% to $233 billion, with the Summer Olympics and presidential election generating $6.2 billion in incremental revenue, up from the $5.4 billion in incremental revenue added by Olympics and elections in 2018. The firm also expects non-linear advertising sales by television companies to increase 22% to $2.6 billion in 2020, meaning that it will represent 6% of national TV ad revenue at that point.

“Linear television remains attractive for its reach and brand safety, and affordable by the tech sector,” the report said.

English-language broadcast network ad revenue is expected to be up 1% in 2020 thanks to a boost from the Olympics and presidential election. Without the Olympics and elections, spending would be down 4%. Cable networks could see a 0.5% drop in 2020 including the Olympics and election spending, or 2% excluding those events.