Magna: U.S. Spending Will Rise 3% in 2010, Search to Jump 17%

Magna has raised its 2010 forecast, now predicting that U.S. ad spending will rise by 3%, including revenues from the Olympics and spending on elections, to $164.5 billion.

Excluding elections and the Winter games, ad spending should be up 1.6%, the Mediabrands media research unit said (via MediaPost). The 3% expected growth is up from the 1.4% chief media forecaster Brian Weiser predicted in January.

Magna now expects U.S. advertising growth to average 3.5% through 2015.

The improved economy, an influx in ad spending by automakers, and an improvement in local advertising led to the boosted forecast, Weiser said

Internet, TV Strongest Media

The fastest growth will come from:
  —Internet, which will grow 12.8%, with search up 16.8%
  —Local television, now expected to grow 16.2%
  —Television, which is predicted to jump 10.2%

Print Still to Suffer

Print is expected to continue its decline:

  —Magazines will slide 6.9%
  —Newspapers will slip another 11%
  —Local papers will fall 10%

ZenithOptimedia Still Expects U.S. Drop

Last week, ZenithOptimedia also revised its predictions upward for 2010, but still expects spending in the U.S. to be down this year. The forecaster predicted a 2% drop in U.S. ad spending (up from the 12.9% drop the U.S. saw in 2009).