New York—Magna, a division of Interpublic Group’s Mediabrands, has upgraded its U.S. ad forecast to essentially flat (down 0.1%) for the year, compared with the forecast of a 1.3% decline issued last month.
“As expectations for IP (industrial production) have improved and should post positive year-over-year growth by the second quarter of this year, we believe this will mark the turning point in media suppliers’ recovery,” wrote Brian Wieser, director of global forecasting at Mediabrands.
Magna said the ad industry will benefit from Olympic and political advertising this year, although it did not include those figures in its trend analysis.
“Our longer-term forecasts have also been modestly increased to reflect higher confidence in economic recovery,” Wieser said in the forecast. “Magna now forecasts total normalized media supplier advertising revenues will rise by a compounded annual growth rate of 2.3% between 2010 and 2015.”
In the December forecast, Magna projected U.S. ad spending would grow by less than 2% between 2010 and 2015.