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MoffettNathanson: U.S. Advertising to Rise 3.4 percent in 2017 Thanks to Web

14 Jun, 2017 By: Doug McPherson

NEW YORK – Higher-than-expected internet advertising business in 2017 will more than compensate for TV ad declines, including all platforms – broadcast, cable, and TV stations – according to a report from MoffettNathanson Research.

The findings show that online gains will help U.S. advertising improve modestly this year with overall U.S. advertising in 2017 rising 3.4 percent, hitting $197.3 billion. Previously, MoffettNathanson had estimated a 2.7-percent gain.

MoffettNathanson estimates that “traditional” media – TV, radio, magazines, outdoor, and print – will lose 5.9 percent to $111.4 billion in 2017. Total TV advertising will be down 4.1 percent to $76.4 billion. This will ease somewhat next year: projections call for a 1.5-percent decline in 2018.

New projections show that total internet advertising – search, video, display, mobile, and social – will grow 18.5 percent to $85.9 billion. An earlier effort forecast a 16.3-percent hike.

TV stations will lose 8.2 percent to $20.8 billion. Analysts say this dive was largely expected after high-dollar gains in 2016 from political and Olympic advertising. Broadcast networks will drop 3.7 percent in 2017 to $15.7 billion, while local cable is expected to fade 6.1 percent to $5.1 billion. Ad-supported cable networks, the best-performing TV platform, will slip just 1.5 percent to $30.3 billion.

Radio will be off 1.5 percent to $17.5 billion; newspapers will dip 8 percent to $15.2 billion; and magazines will lose 1 percent to $12.4 billion. Meanwhile, outdoor will see a slight rise: 1 percent to $7.6 billion.

Michael Nathanson, media analyst with the firm, says Google and Facebook continue to dominate the advertising landscape. 

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