Forecast: U.S. ads to increase 3.1% in 2011

U.S. media supplier advertising revenues are expected to grow by 3.1 percent in 2011, strategic media investment firm MagnaGlobal announced in a forecast today.

Media revenues were up in 2010, thanks to political and Olympics advertising, and this growth will likely continue at a pace of 1.8 percent, according to the firm’s “U.S. Media Advertising Revenue Forecast.” The overall ad economy was up 3.2 percent in 2010, boosted by a 4.5 percent growth in the fourth quarter.

The country’s national cable networks were the “main beneficiaries” of the ad recovery last year, growing 12.4 percent – a bigger gain than almost every other local category, including local online media. This trend is expected to continue into this year, as “large, national advertisers continue to shift dollars to awareness-driven Mass Media including Network Cable, which should grow 10.8% and outpace Network Broadcast TV, which we see growing 2.4%,” a press release on the report states.

National digital advertising, helped by wider adoption and a healthy national advertiser base, grew quickly at the end of 2010, and is expected to continue, growing 18.7 percent in 2011 alone, according to Magna.

The direct media segment is seeing difficulties, but paid search, which relies mainly on small and medium-sized businesses, is a leader in this group, the report states. Direct media (Internet Yellow pages, paid search, lead generation, directories and direct mail) are only expected to grow 0.8 percent this year.

“Over time, we expect the long-term trend to resume: Direct Media advertising growth will outpace that of Mass Media as small and medium-sized businesses more broadly participate in economic growth and again lead media supplier advertising revenue growth,” Magna states.

Image: MagnaGlobal

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