Axios Media Trends – June 19, 2018

Data: MAGNA; Chart: Chris Canipe/Axios

U.S. digital ad sales will be the only type of ad medium to grow significantly this year, and much of that growth can be attributed to the rise in social, video and search advertising bought on Google and Facebook-owned properties, according to the latest global ad forecast by Magna, an agency within Interpublic.

The big picture:

  • Digital ad sales are expected to rise by 15% to pass the $100 billion milestone, meaning that digital will encompass 52% of all ad sales in the US.
  • Non-digital ad sales will shrink by 4.6%, according to the report.  

The figures in the chart above exclude major cyclical events taking place in 2018, like The World Cup and midterm elections. If included, TV ad spend increases significantly.

For kicks: When it comes to political ad spend, Vincent Létang, EVP, Global Market Intelligence at MAGNA and author of the report, tells Axios you shouldn’t expect to see such high spend numbers outside of the US.

“It’s unique to the U.S. In other parts of the world, political advertising is regulated in some cases (Europe) or completely banned. Since the Citizens United decision in 2010 made political advertising in the U.S. basically unregulated, it’s a real bonanza for local television every other year. During election year, political ads can be up to 10-15% of local stations’ ad revenue.”

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