MagnaGlobal Forecasts 1.8 Percent Advertising Growth in 2011
U.S. advertising sales will increase 1.8 percent in 2011, less than last year’s 3.2 percent, reflecting a slow recovery in the overall economy, according to MagnaGlobal, a unit of Interpublic Group of Cos.
Excluding 2010 spending for the Olympic Games and political races, sales this year will rise 3.1 percent, New York-based MagnaGlobal said in a statement.
Advertising growth will be impaired by weakness in key sections of the economy, the company said. The International Monetary Fund reduced its forecast for growth in the U.S. gross domestic product to 2.8 percent last week, citing the rising cost of food and gasoline and “lackluster” job creation.
Large advertisers will continue to shift spending to cable television networks from broadcast channels during the year, MagnaGlobal said. Cable spending will increase 10.8 percent, compared with 2.4 percent growth for broadcast networks.
To contact the editor responsible for this story: Anthony Palazzo at firstname.lastname@example.org