Thanks to Neflix, Comcast and streaming, it seems like ages ago I sat through an entire television commercial. The only time I look forward to watching commercials is during the Superbowl! How are advertisers able to maintain reaching audiences without the ability to have as much of a reach through television? The answer is Digital Advertising. According to the online site, Advertising Age, global ad revenue will grow up to 4.8% (which comes out to $536 BILLION) in 2015. The article also states that digital media will “reach 30% market share globally in 2015, and it’s on track to surpass TV revenue in the US by 2017”.
In 2014, digital media grew to 142 billion (17%) due to new social formats and mobile campaigns. In 2015 its expected to continue to increase by another 15%. Digital media is also affecting other international markets, such as the UK, which is the number one media category over television and magazines. Newspaper ads decreased 4.3% while magazines took a bigger hit, down 7.3%. Surprisingly, out-of-home media grew 3.4% while radio stayed the same. Mobile ad spending is predicted to be a huge digital revenue by 2016- it’s expected to account for 1/4 of all digital revenues.
TV revenue in the United States is expected to decrease by 1.4% to 169.5 billion in comparison to the increase of digital media. The reason why there was a decrease in television spending was due to the bad weather that affected restaurants, automobile and retail. The main reason was due to consumers “heightened interest in digital”. Since digital is cheaper and more visually appealing than traditional advertisements, it rose in power in comparison to television ads.
Other countries such as India, Japan, Spain, UK and Australia’s advertising revenue grew this year while Russia, China, Brazil, Canada and Germany’s grew slower than expected.
It doesn’t seem to be quite a surprise that digital media will overtake television. In fact, for people of my generation, I feel that it took quite some time for businesses to put more money into digital advertising than television. Newspapers caught on faster that people were acquiring their information from the internet. Thus, online newspaper publications were created. How were advertisers not savvy about focusing more of their ads online when the trend to watch television shows, movies and the news on it? What do you think about digital advertising overtaking television campaigns?
Bruell, A. (2014, December 8). Digital Ad Spending to Pass TV by 2017, Magna Global Says | Agency News – Advertising Age. Retrieved December 13, 2014, from http://adage.com/article/agency-news/digital-ad-spending-pass-tv-2017-magna-global/296090/