Retail media and the bounce-back of digital advertising led IPG’s Magna to raise its ad revenue growth forecast for the U.S. to more than 5% to total $337 billion in 2023.
The updated fall outlook comes as the U.S. economy and advertising spending were both “stronger than expected so far this year,” said Vincent Létang, evp of global market intelligence at Magna Global.
For the second half of ’23, the firm predicts total ad spend to continue growing. Digital formats are expected to continue thriving, supported by cyclical ad spending that will help boost traditional media. Even so, agencies say they need to be prepared for changing economic conditions.