Dive Brief:
- Although global ad revenue is anticipated at almost 4% growth over 2014, Magna Global just reduced its projected growth for 2015 by almost a percentage point.
- This recalculation includes anticipated lower spending in the U.S. as well as the BRIC -- Brazil, Russia, India and China -- region.
- ZenithOptimedia also reduced its ad spend estimate, although to a lesser extent, cutting only 0.2% from its previous March projection.
Dive Insight:
A weak global economy is impacting advertising revenue. Magna Global, the strategic global media unit of IPG Mediabrands, released a new forecast for global ad revenue that anticipates an increase over 2014, but a drop of almost a percentage point over last year’s growth, a change from the company’s December projection. ZenithOptimedia, an ROI agency, also recalibrated its ad spending forecast from March to reflect a smaller loss in ad spend growth by 0.2%.
Vincent Letang, Magna Global’s director of global forecasting, told the Wall Street Journal the BRIC region, comprising Brazil, Russia, India and China, was a particular drag on the global economy singling out Brazil and Russia specifically, and anticipating Russian ad spending to drop 11% in 2015.
Against this news for the ad industry, digital media advertising continues to shine and Magna Global expects digital media to own the category by 2018. Traditional ad revenue, including television and print, are expected to drop by 0.8% in 2015.