MAGNA releases March 2024 US Advertising Forecast
MAGNA's recent report signals growth in Pharma & digital opportunities
MAGNA’s March 2024 US Advertising Forecast presents an optimistic outlook for the US advertising market, projecting a robust growth of +9% this year, with total ad revenues expected to hit $369 billion. The report highlights several key trends that are particularly pertinent to the pharmaceutical sector and other related industries.
Resilience in Pharma and Travel
One of the standout observations is the marked resilience and expected growth within the pharma and travel sectors. While the forecast does not provide specific growth figures for pharma, the overall positive trend in travel (+9%) and similar verticals suggests a favorable environment for pharma media as well. This is underscored by an improving macro-economic landscape, with GDP forecasts revised upwards to 2.4% from a previous 1.7%.
Dominance of Digital Media
The digital media continues to dominate, capturing the lion’s share of the market growth. For the pharma industry, this underscores the ongoing shift towards digital platforms, with implications for how media strategies should be adapted. The expansion of ad-supported streaming services is highlighted, including the significant growth of premium long-form streaming advertising, set to expand by +13% to reach $10 billion this year. This trend might offer new opportunities for pharma marketers to reach audiences via digital video platforms.
Mixed Fortunes for Traditional Media
Traditional media channels are experiencing mixed fortunes, with some declines noted, particularly in non-cyclical ad sales. However, cyclical events such as the upcoming election cycle and the Olympics are expected to bolster traditional media somewhat. This dynamic could influence the timing and nature of pharma advertising campaigns, aligning them with these larger media consumption spikes.
Growth of Digital Pure-Play Media
Finally, the report emphasizes the growth of digital pure-play media, with platforms like social media and search/retail advertising formats growing by +14% and +12% respectively. The integration of AI in these platforms is enhancing their effectiveness, making them increasingly attractive for pharma marketers aiming to optimize campaign performance.
Summary
In summary, as the advertising landscape evolves, pharma media stakeholders should consider leveraging the strong growth in digital and streaming platforms, while not entirely discounting the potential of traditional media bolstered by cyclical events. The overall economic optimism and specific growth in related sectors suggest a promising year ahead for pharma advertising.
Questions from solli
- Adapting Strategies: How can pharma marketers best adapt their strategies to capitalize on the continued growth and opportunities within digital media?
- Balancing Act: With the resurgence of traditional media during cyclical events, what are the most effective ways to balance digital and traditional media in pharma media campaigns?
- Technological Advancements: As AI continues to transform advertising platforms, what innovative approaches should pharma marketers consider to stay ahead in the digital space?
Read the full ‘MAGNA US AD FORECAST – SPRING 2024 UPDATE’ report HERE.
