3 Things Marketers Should Know About Magna’s Latest Ad Forecast

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U.S. advertising spending is growing faster than analysts thought it would back in December, according to a forecast released by Interpublic Group’s investment arm, Magna.

Interpublic Group’s investment arm Magna expects total advertising spending will grow 9.2% to $369 billion—excluding political spending and tentpole events like the Olympics.

Back in December, Magna predicted 2024 ad spend would grow only by 8.4%.

Here are the most significant takeaways from Magna’s forecast.

Prime Video ads will cause streaming TV to surge

Premium long-form streaming channels will grow 13% this year, Magna predicts, meaning it would claim 22% of total national TV investments.

And Amazon’s new Prime Video ads offering will drive much of that growth, propelling the category to $13 billion.

Retail and travel are hot, but entertainment and tech are not

Retail and travel categories are particular bright spots for marketers and should each grow by 9% this year, according to Magna.

Unfortunately, entertainment and technology verticals continue to be slow-to-no-growth areas. Magna expects tech ad spending to only grow by 1%, while entertainment will decline by 4%.

Political ad spend is propping up traditional channels

Magna forecasts digital ad channels as a whole will grow 12%, to $261 billion. That’s 72% of the total ad spend. Within that sector, search and retail media will grow at a healthy 12% clip, and social media will increase 13%.

While traditional media owners will see ad revenues grow by 3.5%, that’s mostly due to cyclical factors like political advertising. Without political spending, Magna predicts traditional channels will decline by 3%.

Analysts predict what lies ahead for the ad industry.

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3 Things Marketers Should Know About Magna’s Latest Ad Forecast

Prime Video ads will cause streaming TV to surge

Retail and travel are hot, but entertainment and tech are not

Political ad spend is propping up traditional channels

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