Interpublic Group’s MAGMA recently released their quarterly US Advertising Forecast report and predicted US digital advertising in 2017 will reach $80 billion in sales. This represents an almost 14% (~$10 billion in sales) growth over 2016.
On the flip side, offline ad sales will fall by about 3% to about $103 billion in 2017, a year without significant political and olympics ads spending.
Search is expected to remain the largest revenue generator, bringing in $39 billion, a 13% growth over 2016, while video and social is once again expected to post the strongest growth rates of about 28% each. MAGNA expects the social media vendors (Facebook, Snap, Twitter etc.) will continue to offer new innovative video ad formats to advertisers, including ads in live social streams, leading to social video ad sales to double again in 2017 to reach more than $4 billion, i.e. a third of total US digital video ad sales, and 20% of total social media ad sales.
Digital ad sales are expected to get close to 40% of the industry total in 2017 and are forecast to reach 50% by 2021.
In 2016, digital ad sales beat television (both national and local) ad sales for the first time with ~$70 billion versus ~$67 billion. The gap between digital and television ad sales is expected to widen in 2017 with ~$80 billion versus ~$64 billion.
You can read MAGNA’s summary report below that includes a recap of total media owners advertising revenues in 2016 or download it from their website.