Media strategy agency Magna Global has revised its expectations for ad spending in the U.S., predicting that it will reach $179 billion in 2016, a 6.3% increase. In June, Magna Global had originally forecasted a 6.2% increase in ad revenue for the year. If the adjusted prediction is accurate, it will be the largest increase in U.S. ad spending since 2010, when revenue grew 6.6%.
Discounting incremental sales accompanying the presidential election and Summer Olympics, growth is predicted to be 4.4%. Last year’s growth was 4.3%.
Magna Global’s revision comes after a stronger first half of the year than previously expected, with an increase in ad revenue at nearly 7%. This includes surges of 4.6% in national TV, 18.3% in digital media and 3.8% in out-of-home advertising. Meanwhile, print declined by 9% and radio by 2%. Additionally, the first quarter of 2016 saw the highest year-over-year growth in 10 years.
The research also found that, for the first time, digital advertising sales will equal those of TV this year, with both hitting $68 billion. At 44% growth, social media advertising is the largest contributor to digital advertising’s revenue boost. By 2020, Magna Global predicts digital ad sales will reach $105 billion.
Overall growth in advertising in 2017 is expected to slow because of fewer tentpole events next year, such as the Olympics and the presidential election; Magna Global predicts a 1.4% increase for the year.