The Hollywood’s strikes are affecting production and its by-product, linear TV advertising. According to media investment firm Magna (part of Interpublic Group), ad spending on traditional U.S. media is expected to shrink by 3.6 percent in 2023.
However overall ad expenditures for this year are expected to grow by 5.2 percent to a total of $337 billion. These figures exclude ad investments around cyclical events, which for 2024 include the Summer Olympics in Paris and the U.S. presidential elections.
About 2024, Magna predicted U.S. ad revenue to be further down three percent for national TV and five percent for local TV due to the continuing Hollywood strikes.
As an analyst at financial company MoffettNathanson recently wrote, this is “the final blow to the traditional linear model, devaluating its core remaining advantage of offering efficient reach.”
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