MagnaGlobal predicts digital advertising to grow 18.7% in 2011

MagnaGlobal logoAccording to MagnaGlobal‘s “US Media Advertising Revenue Forecast” (as reported by DM news), “Revenue from awareness-driven mass media advertising will grow 10.8% in 2011. Revenue from national digital advertising will grow 18.7% in 2011, driven by strong growth in display, online video and mobile budgets, according to the firm.”

The growth picture for direct media is not so bright:

“Direct media, which the firm defined as Internet Yellow Pages, paid search, lead generation, print directories and direct mail, will perform more poorly than mass media for a second consecutive year. However, direct media advertising revenue will ultimately grow at a greater pace than mass media advertising revenue in the long term, the firm said. Direct media advertising revenue will grow 3.9% by 2016, compared with the 3.7% growth in mass media advertising revenue in that time.”

Direct mail, once again surprises the analysts because it bucks the trend of other traditional media and continues to grow: “Direct mail did a lot better than we thought,” said Feldman. “It will grow each year within the next five years. But compared to electronic media, direct mail and directories are at a disadvantage.”

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