U.S. ad spending is growing faster than analysts expected in December, according to forecasts from Interpublic Group's investment arm Magna.
Magna, the investment arm of Interpublic Group, expects total advertising spending, excluding political spending and high-profile events such as the Olympics, to rise 9.2% to $369 billion.
Back in December, Magna predicted that ad spending would increase by only 8.4% in 2024.
The most important takeaways from Magna's predictions are:
Streaming TV skyrockets with Prime Video ads
Magna predicts premium long-form streaming channels will grow 13% this year. It is expected that he will account for 22% of the total national television investment.
And Amazon's new Prime Video ad service will drive much of that growth, pushing the category to $13 billion.
Retail and travel are popular, but entertainment and technology are not
Retail and travel categories are particularly bright spots for marketers, with each expected to grow 9% this year, according to Magna.
Unfortunately, the entertainment and technology sector remains a slow or no-growth sector. Magna expects technology-related ad spending to grow by only 1%, while entertainment to decline by 4%.
Political ad spending supports traditional channels
Magna predicts that overall digital advertising channels will grow 12% to $261 billion. This represents 72% of his total advertising spend. In this area, search media and retail media are expected to see healthy growth of his 12%, while social media is expected to increase his 13%.
Traditional media owners are expected to see a 3.5% increase in advertising revenue, driven primarily by cyclical factors such as political advertising. Magna predicts that without political spending, traditional channels would be down his 3%.
