Good news for Madison Avenue
U.S. ad spending looks stronger than you might have expected. In fact it’s better than Magna has been predicting, and Interpublic’s media intelligence unit just raised its forecasts. Media net ad revenue will grow 4.1 percent in 2019 and 6.2 percent in 2020, Magna says, up from the previous estimate of 3.0 percent and 5.8 percent respectively.
As Ad Age’s Bradley Johnson reports, Magna says spending might cool off in automotive, retail and finance as the economy slows a bit. “Fortunately, 2020 is the strongest year in the four-year cycle of events that typically drive extra ad spend and incremental ad revenues,” the report says. Translation: Next year brings both the 2020 Summer Olympics in Tokyo and the U.S. presidential elections.
Out: “Nike has parted ways with New England Patriots wide receiver Antonio Brown, who has been accused of sexual assault by a trainer,” Bloomberg News reports.
Wins: The U.S. Marine Corps retained Wunderman Thompson as its lead agency after a review, Ad Age’s Lindsay Rittenhouse reports. Wunderman Thompson was formed by the merger of two WPP agencies, Wunderman and J. Walter Thompson, and the latter has held the Marines account for decades.
Meanwhile at Amazon: Amazon CEO Jeff Bezos pledged the company will be carbon neutral by 2040 and announced plans to buy 100,000 electric delivery vans, Reuters reports.
Flying pharmaceuticals: Walgreens will soon test drone delivery with Alphabet service Wing. You can order snacks and over-the-counter meds, but not prescription drugs, CNBC reports.
On the newsstands: Time is out with a strong cover story, “The New American Addiction,” with the subhead “How Juul Hooked Kids and Ignited a Public Health Crisis.” Read more publishing news by Ad Age’s Simon Dumenco.
Podcast of the day: “What do the San Francisco 49ers, Chicago Bulls, esports team Golden Guardians and Broadway musical ‘Tootsie’ have in common?” Ad Age’s Jessica Wohl asks. They all cut deals with Zenni Optical, which makes glasses. Wohl talks to Sean Pate, brand communication officer, in this week’s Marketer’s Brief podcast. Subscribe on iTunes or Spotify.
Product of the day: A startup called Lex is plugging a “wearable” chair, a bizarre contraption you strap onto your rear end. It looks like something Inspector Gadget would approve of. To quote Vice, it’s “a pair of bendable, aluminum skewers that look like they sprung from your cheeks.” Enjoy the product demonstration video, and happy Friday.
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