US advertising market to grow to $377b

Spending on advertising in the US is expected to increase 11.4% to $377bn this year, according to Magna.

Improving macroeconomic conditions and high consumer demand for digital, streaming and cyclical events, including the Olympics and the presidential election, caused the media agency to revise its forecast up from June when it projected annual growth of 10.7%.

“Even without the incremental advertising spending generated around cyclical events, 2024 already looks like a strong year for the US ad market, growing by almost +9%,” said Vincent Létang, executive vice president of global market intelligence at Magna.

“This is due to strong demand from brands, in a stable economy, and supply-side innovations — e.g., the rise of ad-funded streaming and retail media – offering more scale and return-on-investment to marketers.”

Digital advertising including search, retail, social and short-form video will account for 72% of the market at $264bn, representing annual growth of 13.6%.

Advertising revenues for traditional media owners will increase 5.1% to $11bn. Without cyclical spending, however, revenues would decline 1.5%.