MagnaGlobal Cuts 2012 U.S. Ad Growth Forecast from 4.8% to 2.9%

NY - MagnaGlobal, among advertising company Interpublic, on Tuesday cut its outlook for U.S. advertising trading in 2012 from formerly eyed growth and development of 4.8 percent to 2.9 %, stating a "slow-but-positive economic recovery." The business maintained its 2011 forecast of a single.six percent growth, predicting that media companies will generate $173.5 billion in ad revenue. Excluding direct marketing components, however, revenue growth and development of core media groups is going to be at 2.9 % this year and 4.three percent next season, it mentioned. 2011 should participate in as formerly forecasted carrying out a mid-year reduction in growth anticipation, according to MagnaGlobal. "Due to persistent weakness inside the U.S. economy, however, we've modified our 2012 growth forecast," the business mentioned."A recession in solid personal consumption costs, manufacturing activity and ongoing problems inside the labor and housing areas all result in the modified outlook." MagnaGlobal now forecasts ad revenue to attain $178.5 billion in 2012, "that's still substantially underneath the pre-recession amount of 2007 of $206.1 billion," it mentioned. TV will be the fastest-growing medium after online in 2012, with gains of seven.one percent and 11.six percent, correspondingly. The 2012 elections as well as the Summer season Olympics will generate incremental revenue of $3.1 billion for television, with $2.5 billion in political advertising - "the finest trading ever, mainly on local broadcast television," the business mentioned. Its estimations also demand $633 million in trading round the London Olympics, up 5.5 % when compared with Beijing in 2008. Local media advertising, including local radio and TV, will probably be pockets of weakness though. "We presently expect this segment to express # 1.one percent this season and .4% in 2012," Magna mentioned. Email: Georg.Szalai@thr.com Twitter: @georgszalai Related Subjects