With the increasing streaming focus on ad-supported content, the softer US ad environment has been a source of concern for many. Luckily, we’re looking at a recovery leading into the 2024 environment. While the impact of the strikes and other economic issues cannot be removed from the table entirely, it is good news overall- and our entertainment attorney Los Angeles Brandon Blake, from Blake & Wang P.A, is here to share it.
Boosted Forecasts
According to data from Magna, a media investment company, the US advertising market for the end of 2023 and 2024 should see significant improvement. This is off the back of better-than-expected data from the current year, as well as a strengthening economic outlook. Overall, total advertising spending for 2023 has improved significantly, with sales up 4.4% after 2 years of stagnation.
Sadly, this mostly favors digital media vendors (read: streamers), with traditional media companies still seeing a significant downturn (negative 4.1%). Still, good news is good news.
Revised Estimates
According to Magna’s data, total ad spend for the third quarter of this year should see about 7% growth. Significantly better than the 2.9% of quarter one. Full-year estimates of 5.2%, a full percent higher than originally projected, are in place. What does that mean in dollars? Roughly $337B in spending. While shrinkage in the non-cyclical market is still on the table, the rise of AVOD advertising should offset this significantly.
For 2024, they are projecting a 5.6% rise, over the initial 5% benchmark. If we include cyclical political spending, that could rise as high as 8%. This does hinge on the continued production of attractive content and the resolution of the strikes.
While all is not well, exactly, in the advertising market, this is certainly a better position than the recession-like climate many advertisers were bracing for at the start of the year. It’s sure to be a relief for many key players in the entertainment industry, too.
Film and Television 