Magna Global Revises U.S. Ad Forecast Upward

NEW YORK: Magna Global is forecasting that U.S. media owners' advertising revenues will grow by 6 percent this year to $168 billion, an increase from its previous forecast of 5.5 percent, thanks to the World Cup, mid-term elections and other non-recurring events taking place in 2014.

The key drivers include an improved economic outlook in the U.S. and incremental ad spend from the Sochi Olympics, mid-term elections, the World Cup and communication on health insurance following the implementation of the Affordable Care Act in various states.

TV is expected to benefit the most from these non-recurring 2014 events, with advertising revenue growth of 8.3 percent after a stagnate 2013.

With economic recovery and decreasing unemployment, Magna Global is expecting underlying ad growth to accelerate further in 2015, up 4.6 percent.