The U.S. advertising market is expected to reach an all-time high in 2018, with media owners reaping $197 billion in net advertising revenues, according to a new report from Magna. Broadcast radio advertising sales are forecast to decline 4%, despite “the channel’s high reach,” because of a negative pricing trend.
The overall increase in advertising represents year over year growth of 5.5%, which Magna says “will be driven by a strong economic environment and incremental ad spend around cyclical events.” This is an acceleration over last year’s growth—of +2.7%—and an increase of its previous forecast of +5.0%.
The Magna Advertising Forecast Report also predicts that digital will control a staggering half of all ad dollars in 2018. Digital ad formats such as search, video, display and social will continue “to account for the lion’s share of advertising growth,” reaching the 50% marker one year earlier than previously anticipated. Digital advertising sales will grow by +14% in 2018 to reach $97 billion, of which almost 60% will come from mobile advertising.