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Ad Companies Slightly Lower 2015 Global Ad Forecasts

The Wall Street Journal reports that forecasts released by GroupM, ZenithOptimedia and MagnaGlobal each placed 2015 growth of the global advertising market at around 5%, driven by digital advertising. These projections reflect a slight downward revision versus previous estimates.  For the US in particular, MagnaGlobal estimates 2015 growth at 2.7%, while GroupM pegs the figure at 3.9%.

MagnaGlobal expects digital ad revenue to increase 15% in 2015, while television will grow by 3% and print will see single digit declines. Mobile advertising continues to be a strong growth area, accounting for 51% of all new ad dollars between 2014 and 2017, according to ZenithOptimedia.

Magna Global notes that digital media’s growth may be a double-edged sword for the ad market. “Digital media can attract budgets previously spent on below-the-line marketing and from small and local businesses who didn’t previously spend anything on marketing. At the same time, however, the shift in ad dollars from traditional media like TV to digital media has a deflationary impact and hurts the pricing power of traditional media. When advertisers shift budgets to digital media, they expect to save on their overall advertising and marketing spending.”

 

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