MAGNA Raises 2024 U.S. Ad Spend Forecast

MAGNA has updated its 2024 U.S. advertising revenue forecast, citing a stronger economy, growth in digital media, and the impact of major cyclical events like the presidential election and Summer Olympics.

Total U.S. ad revenues are now expected to increase by 11.4%, reaching $377 billion, up from the previous forecast of 10.7%. Non-cyclical ad spend is projected to grow by 8.9%, making 2024 one of the strongest years for U.S. ad spending in two decades.

Health-related sectors, including pharmaceutical advertising, are seeing steady growth. Pharma ad spend increased by 1% overall, with a notable 6% rise in national TV ad sales in the first half of the year. This reflects a continued investment by pharmaceutical companies in traditional media, even as digital channels drive most of the broader market growth.

The report also pointed out that ad-funded streaming TV, a rapidly growing channel, saw ad spend increase by nearly 20% in the first half of 2024. This trend offers pharmaceutical companies new avenues to reach healthcare professionals (HCPs) and consumers alike.

Vincent Létang, EVP of Global Market Intelligence at MAGNA, commented on the strong performance of the U.S. ad market, noting that innovations such as ad-funded streaming and retail media have provided advertisers with greater reach and return on investment. These developments, combined with the overall growth in non-cyclical and cyclical advertising, are driving substantial increases in total ad revenues across sectors, including health and pharma.

With a solid macroeconomic outlook for the rest of 2024, pharma advertisers can expect continued opportunities to engage with both HCPs and consumers through a variety of media channels, particularly as digital and streaming platforms expand their influence.