Advertising spending in the U.S. is expected to increase 2.7% in 2015 to $169.5 billion, according to the Magna Global research firm in New York, which reported a 4% hike this year.
Look for a decline in TV spending after a 4.8% increase tied to the once-every-four-years FIFA World Cup and Winter Olympics. Magna anticipates the segment to decrease 1.4% in 2015.
No surprise that digital media continued the big gain, with an increase of 15.6% to about $50 billion. “Search” grew by 12%, video by 28%, and social media ad revenue by 65%. Mobile advertising accounted for 25% of digital media ad revenue, and the category could reach a 31% market share in 2015.
Local marketers continued to embrace the digital trend—Taco Bell Corp. in Irvine and BJ’s Restaurants Inc. in Huntington Beach kicked off mobile app ordering programs, and Irvine-based Mazda North American Operations just launched the second installment of advertising via the Xbox video gaming system.
Traditional media continued to decline. Newspaper ad revenue dipped 9.2% to $16.4 billion. Magazines were down 10.9% to $10.7 billion, and radio ad sales decreased by 3.2% to $14.7 billion. Manga expects each category to narrow its declines slightly next year.
Person to Watch
Richard Mirman
Mirman set his own bar for success when he took on the role as the interim publisher of the Santa Ana-based Orange County Register in October.
“I wanted everyone to know that I will prove myself,” he said at the time. “If I do, I’d like the opportunity to continue, and if I don’t, then as an investor and as an adviser to Eric (Spitz) and Aaron (Kushner), I think an alternative should be considered.”
Mirman’s appointment follows Kushner’s decision to switch newspaper delivery from the Los Angeles Times to ACI California LLC, a move that caused significant disruption in service. Kushner remains Freedom Communications Holdings Inc.’s chief executive and a co-owner, along with Spitz.
Mirman has overseen several cost-cutting measures in an effort to make the company profitable, including slashing 100 jobs last month at the Register and the Press-Enterprise in Riverside. He also shuttered the OC Register Metro and OC Register Magazine.
He has projected a return to profitability based on the latest cuts—the third round of layoffs in 2014—and what he has called conservative revenue projections. It won’t likely take too long to tell whether Freedom gets back in the black—and whether Mirman will be dropping the interim tag from his title.
Company to Watch
Mitsubishi Motors North America Inc.
Mitsubishi Motors North America Inc. is on track to close this year in the black, according to executives of the Japan-based auto brand, which has its U.S. headquarters in Cypress.
The automaker sold 71,098 vehicles
here in the first 11 months of the year, a 27.7% increase from the same period last year.
That’s still behind its OC rivals, Mazda North American Operations, which sold 280,993 vehicles during the same time period, and both Kia Motors America Inc. and Hyundai Motor America, which are well past the 500,000 mark.
Mitsubishi will look for more gains with the anticipated arrival of the electric Mitsubishi Outlander PHEV expected late next year, and another solid year would likely put a stop to any chatter about an end to the brand in the U.S.
Mitsubishi hired Grupo Gallegos in Huntington Beach in October for a national campaign aimed at Latino-Americans, and it continues to work with 180LA as its creative agency of record. It spent about $78 million on media buys, according to Kantar Media in New York.
