Magna Global Revises Its U.S. Ad Forecast Downward To 2.9% Growth

Magna Global has revised downard its projection of growth in the U.S. advertising economy. In a revised forecast, identifying what it called "first signs of weakness," the company last Friday [June 17] downgraded its outlook for U.S. ad spending in 2011, now projecting a growth rate of 2.9% for the year vs. a previous prediction of 3.1%, vs. 2010. "In light of recent economic reports, we are revising our forecast slightly downward," Magna Global stated. "While we see the disruption from the earthquake in Japan and high gas prices as temporary, the economy still suffers from a depressed housing market, sluggish employment conditions, and fiscal retrenchment at all levels of government. Our previous forecasts had already conservatively assumed a slowdown in the second half of 2011." For specific media, Magna says it expects "national TV to grow 7.9% in 2011, up from our previous estimate of 6.5%. Despite upward revisions to national mass media, signs of a slowdown are concentrated in local mass media, driven by weakness in newspapers, radio, and outdoor advertising. Direct media has been particularly impacted by sharper declines in directories and a slowdown in direct mail." [Full story: All Access]