An advertising trend tracking company released new reports that claim the severe advertising cut backs will be alleviated in 2010. Magna, the group who released the information, forecasts that ad revenue can be expected to reach $161 billion in 2010. This news is especially promising as it’s a revision on a previously released figure on the year predicting a decline of 1.3 percent. Ad revenue has not increased since 2007 when ad revenue reached $204 billion.
It has fallen considerably since then, by 7.5 percent in 2008 and nearly double that in 2009.
The reasoning behind the alteration has to do with the ascending expectations for industrial production and consumer spending which weigh heavily on advertising.
Magna believe online ad revenue will improve by 9 percent to $24.9 billion this year after falling 3 percent to $22.8 billion in 2009.
This news is positive for websites, but ailing newspapers will not reap the benefits of the improvements with an expected ad decline of 11.2 percent after a catastrophic 2009 where 26 percent of ad revenue was lost.
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