The advertising landscape in the United States is poised for significant growth in 2024, according to the latest forecast update from MAGNA. The report predicts a 9% increase in the US, with room for substantial growth in digital audio as radio revenue slows.
Following a robust fourth quarter in 2023, which saw the strongest quarterly ad market growth in nearly two years, MAGNA projects a 9.2% rise in total media owners’ advertising revenues for 2024, reaching a total of $369 billion. This uptick is attributed to a positive macroeconomic outlook, the continued momentum of digital media and streaming, and the influence of cyclical events.
Cyclical events, including the 2024 election cycle, are anticipated to contribute approximately $10 billion in incremental ad sales. Digital platforms are set to capture the majority of the market growth, with non-cyclical advertising sales for digital pure players projected to increase by 12% to $261 billion.
Radio is expected to take a dip, falling 3.3% year over year to end 2024 at $12.6 billion in revenue. AM/FM would outpace local TV, which would have a 3.8% decline were it not for a massive tailwind of cyclical revenue ballooning it to 25.6% growth. Conversely, digital audio is expected to rise 4.4% to $3.3 billion in the burgeoning space, offering new revenue streams for companies that adapt.
The advertising expenditure across most industry verticals is expected to rise, led by sectors such as Retail and Travel, both projected to grow by 9%. Conversely, the Entertainment and Technology sectors are forecasted to see stagnated or slightly increasing advertising activity.
MAGNA EVP Global Market Intelligence Vincent Létang said, “Several factors led MAGNA to increase its US ad market growth forecast. That includes an improved macro-economic outlook with GDP growth raised from 1.7% to 2.4% in the last few months, the momentum of digital media formats: social media, retail media, and streaming. The latter is driven by a strong expansion in the reach and marketing opportunities offered by ad-supported streaming.”
