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• In May of this year, the Supreme Court struck down a 1992 law that prohibited states from legalizing sports gambling, opening the door for them to make their own decisions. A handful of states have already legalized it (Nevada, New Jersey, Pennsylvania, New Mexico, Mississippi, West Virginia, Delaware, and Rhode Island) and others are considering it. But, even in states where it’s not technically legal, we have to believe it has emboldened even underground betting operations. One direct result of this decision seems to be a TV viewing turnaround for the NFL; after three consecutive seasons of declines, ratings this season are flat or up slightly, depending on the demo.

• As linear TV ratings continue to decline, the networks began to make meaningful changes to their ad experiences to both improve viewing and increase revenue. Both NBC and FOX announced plans to implement shorter, one minute ad breaks in primetime, which our own research indicates does improve viewing outcomes. NBC recently announced plans to expand the effort next year, while FOX’s plans are a little more murky.

• Virtual MVPDs, which tend to offer cheaper, slimmer TV bundles than their traditional counterparts and allow users to watch wherever they can connect to the Internet, had a strong year of growth. Part of the growth is due to their cost effective nature, and part is due to the portability of the experience (e.g. streaming a live sports event to your tablet while in the airport). c gastronomie limonest And in the case of Hulu Live, which had a particularly strong year, it offers a “one-stop-shop” for live feeds and its extensive on demand library. In second quarter, vMVPD gains actually offset traditional MVPD losses, although that trend was short lived.

• Data privacy was a huge topic of discussion in 2018, as the General Data Protection Regulation (GDPR) rolled out in Europe and California passed its own data privacy law here in the U.S., which will go into effect in January of 2020. Though the penalties for violating the GDPR in Europe can be harsh (the higher of 4% worldwide revenue or 20 million Euros), we have yet to see any companies brought to task. From consumer perspective, the effect has been a battery of opt-in messages from websites as companies seek to comply with existing regulations and future-proof themselves from any more that may come down the pike.. We plan to study the consumer perspective on ad personalization and data privacy in 2019.

“Global Advertising Spending expanded by the strongest growth rate since 2010 this year. This record growth was fueled by the combination of a robust economic environment prompting most verticals to increase ad spend, as well as stronger-than-expected cyclical spend. Digital media was again the main winner but television proved resilient, thanks to the loyalty of consumer brands, strong pricing and incremental cyclical spend.”

This is an Executive Summary from the Winter Update of MAGNA’s Global Advertising Forecasts. Next update (US and Global): June 2019. MAGNA’s market research publications include dozens of reports on advertising spend, advertising costs, advertising revenues, media consumption, and advertising technology (programmatic), analyzing and predicting ad market trends in the US and 70 countries. To access full reports and datasets (subscribers only) contact Vincent.letang@magnaglobal.com.

• Cyclical events contributed more than one percentage point (+1.2%) to global ad growth in 2018. Excluding the cyclical effect, global advertising spending growth would have been +6.1%, still higher than the normalized growth rate for 2017 (+5.3%). It is therefore continued strong underlying demand from advertisers that proved the main driver in 2018.

• Global advertising demand was strong in countries enjoying a robust economic environment (Ad Spending: USA +7.5%, China +12%, Russia +14%, India +14%) while Western Europe lagged behind due to low economic growth and political uncertainty, but double-digit digital growth and a boost in TV sales thanks to the FIFA World Cup ensured decent growth in Western Europe nevertheless(+4.8%).

• 67 of the 70 markets analyzed by MAGNA showed some level of growth in 2018, with Singapore, Peru and Bahrain the only markets to shrink. The fastest-growing markets were Argentina and the Ukraine (resp. +20% and +25%) but that was mostly driven by economic hyper-inflation. z gas guatemala Many emerging markets grew by double-digits: India (+14%), Egypt (+16%), Vietnam (+11%) and Brazil (+12%, helped by the presidential campaigns and the World Cup).

• Linear television ad revenues grew by +3.4% to $184 billion, thanks to cyclical events (mostly the Winter Olympics in North America and the FIFA World Cup in the rest of the world). These events were not enough to curb the continued erosion of ratings but they contributed to an acceleration in cost-per-thousand inflation (+8% in 2018 compared to +6% in 2017).

• Television is the only “traditional” media category to benefit from such strong pricing power, while print and radio prices are stagnating or even declining in some markets. The robust demand for television, despite ever-increasing costs, came from the combination of various factors this year: (i) incremental spend from sports-oriented brands (drinks, automotive) (ii) loyalty from big consumer brands in CPG/FMCG sectors (food, personal care and household goods, restaurant chains and pharmaceuticals) that value the reach, brand safety and transparency of traditional linear TV (iii) organic growth from the technology sector and internet giants promoting new products (voice assistants) or engaging in branding campaigns, and (iv) growing ad sales from “advanced” TV ad formats (e.g. over-the-top or household addressable campaigns like Sky Ad Smart in the UK).

• Digital advertising in 2018 barely slowed down from 2017’s growth rate (+17.6%), despite new regulations on data privacy (e.g. GDPR in Europe) and the concerns expressed by some consumer brands in the last 18 months. Growing user consumption in emerging markets, product innovation, and robust demand from long tail advertisers drove search advertising growth of +16%, while video (+29%), and social media (+33%) grew even faster.

• Other media categories struggled to various degrees in 2018 as they did not benefit from the pricing power and cyclical drivers of television. Global Print NAR decreased by -11% to $55 billion. Radio ad sales decreased by -1% to $28 billion; the decrease in revenue was similar to the one experienced in 2017. The only “traditional” media category to show moderate growth in 2018 was, again, Out-Of-Home. Global OOH NAR is forecast to grow by +4.6% to $34 billion (including cinema). OOH did benefit from cyclical events but the main driver remains the organic growth of digital OOH inventory in premium locations and “placed-based” environments. DOOH NAR grew by +16% this year to reach $5.7 billion.

• For 2019, MAGNA forecasts global advertising to grow for the tenth consecutive year. The growth rate will slow down to +4.7% to reach $578 billion (+$26 billion) mostly due to the absence of major cyclical events. gas vs electric oven temperature Excluding cyclical events, the 2018 growth would be +5.8% i.e. only marginally below 2018’s growth rate (+6.1%). The lack of cyclical events will mostly affect offline media sales (-2.4% to 293 billion) while digital media sales will grow by +13%.

• In the US, media owners net advertising sales (NAR) grew by +7.5% in 2018 to reach $208 billion, a new all-time high. Neutralizing the estimated incremental advertising spending generated around cyclical even-year events (Winter Olympics, FIFA World Cup, Midterm Elections), 2018’s underlying growth would have been +5.3%, an acceleration compared to 2017 (+4.9%). MAGNA expects advertising growth to continue in 2019 albeit at a slower pace: +4.5% (excluding cyclical events).

• Cyclical events generated an estimated $5.1bn of incremental advertising dollars in 2018, an all-time high. More than four billion came from midterm campaigns (+43% vs 2014), including $3.1bn for local television (+28% vs the previous midterms 2014, +6% vs 2016), $460m for direct mail (+15%), $150m for radio and $20m for OOH media. This cycle was the first-ever to generate massive spending for digital media, with an estimated $175m for digital video (Youtube, Hulu, etc.), and at least $400m for social media (Facebook, Twitter etc.) representing approx. 1% of total annual revenues for both.

• The main drivers of 2018 growth were the strong economic environment, retail sales and business confidence that prompted most industries and most brands to increase their marketing and advertising spending in 2018: Finance, Pharma, Food & Beverage and Technology increased advertising spend by +10% or more. Retail and Personal Care were up too, while Automotive, Movies, Restaurants and Telecoms reduced ad budgets.

• Digital advertising continued to show impressive growth in 2018: paid search advertising grew by +16%, social media ad sales grew by +33%, and online video ad sales by +26%. Overall digital ad sales grew by almost 17% while linear ad sales (television, radio, print, out-of-home) were essentially flat (-1%) including cyclical events (-5% excluding cyclical events).

• Mobile advertising (ad sales generated through smartphone impressions and clicks) grew by +31% this year to reach $71bn, which is now more than television and twice as much as desktop-based revenues, reflecting the ever-growing role smartphones have taken in our lives. gas quality comparison Meanwhile, desktop-based ad sales declined by -4% hit by lower consumption and by ad blocking.

• National television ad sales were up +1% t0 $43 billion thanks to cyclical effects (down -1% excluding CE). Local TV ad sales were grew +11% (-4% when stripping out political spend). Print ad sales were down -17% to $15 billion (-10% including digital ad sales). Linear radio ad sales were down -4% to $13.4 billion, as local radio pricing continues to decline, while national (network) radio performed better; including digital ad sales (+5%), total audio advertising was still down -3%. Out-Of-Home had a strong year, with advertising sales growing by +3.4% to $7.4 billion.

• Total advertising revenue growth will grow +2.4%. The apparent slowdown will mostly come from the lack of cyclical events. Excluding the impact of cyclical events in 2018 and 2017, underlying ad spend will grow by +4.5% in 2019, i.e. a moderate slowdown compared to an exceptionally strong 2018 (+5.3%). Digital ad sales will grow by +12% while linear ad sales will shrink by -4%.

MAGNA harnesses the aggregate power of all IPG media investments to create leverage in the market, negotiate preferred pricing and secure premium inventory to drive maximum value for our clients. The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all channels including linear television, print, digital and programmatic on behalf of IPG clients. The team focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions to drive optimal client performance and business results.

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness. To access full reports and databases or to learn more about our subscription-based research services, contact forecasting@magnaglobal.com.

GroupM, WPP’s media investment group, is downgrading its initial 2018 growth expectations from 4.5 percent to 4.3 percent in a report to be released this week. It’s also reducing its 2019 growth projections from 3.9 percent to 3.6 percent. The media agency company says this is due, in part, to stress in the auto category and continuing softness in the consumer packaged-goods category.

Magna is forecasting that global advertising in 2019 will grow for the 10th consecutive year but says the growth rate will slow to 4.7 percent due to the absence of major cyclical events. It says global advertising revenues grew by 7.2 percent this year to reach a total of $552 billion in the 70 countries analyzed by Magna. That was buoyed, it says, by the FIFA World Cup in Russia, midterm elections in the U.S. and the Winter Olympics in South Korea, which together generated $6 billion in incremental ad spending.

The IPG Mediabrands company also forecasts digital advertising growth will lose some momentum in 2019, growing only 13 percent as compared to 17 percent in 2018. But that might be due to saturation: Digital media sales are forecast to represent nearly half of global ad dollars next year, Magna says. “As far as we’re concerned, this symbolic milestone will be achieved in 2019 or 2020 at the latest,” says Létang.

Magna forecasts good news for TV, saying that national TV in the U.S. continues to notch price increases that stabilize its revenue. “They have 10 percent less apples to sell, but they manage to sell them 10 percent higher every year because the demand is there,” says Létang. “U.S. television is very expensive, but marketers in pharma, CPG and a lot of verticals find that still it’s worth it so far.”

Publicis Groupe’s Zenith predicts global ad expenditures to grow 4.5 percent by in 2018, reaching $581 billion by the end of the year. gas prices in michigan It predicts 4 percent growth for 2019, down slightly from its September prediction of 4.2 percent growth. Zenith credits online video and paid search as driving the growth as advertisers are focusing on personalized, targeted communications. Zenith says online video advertising will grow at an average of 18 percent a year between 2018 and 2021, twice as quickly as other forms of internet display advertising. Read the Full Article Here About MAGNA