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BizReport : Advertising archives : June 13, 2016

2017 will see Internet advertising overtake broadcast TV for the first time

According to PricewaterhouseCooper's latest outlook report, Internet advertising will overtake broadcast advertising in the U.S. within the next year.

by Helen Leggatt

PwC's annual 'Global Entertainment and Media Outlook' report, a five-year economic forecast for media and entertainment industry revenue and ad spending, forecasts that entertainment and media spending will reach $720billion by 2020, up from 2015's $603billion.

While U.S. TV advertising revenue is forecast to rise to $81.7billion by 2020 (up from $69.9billion last year), Internet advertising is forecast to reach $93.5billion by 2020 (up from $59.6billion in 2015).

In 2017, predicts PwC, Internet advertising will overtake broadcast TV advertising for the time time.

According to Christopher Vollmer, principal with Strategy&, PwC's global strategy consulting firm, there will be no "abrupt switchover" but instead a "continued evolution towards more multi-channel viewing and more digitally enabled viewing".

The biggest ad gains are forecast to be in mobile advertising. Mobile ads are forecasted to reach 49.4% of total Internet ad revenue by 2020, up from 34.7% in 2015, and mobile video will rise from 2015's $3.5 billion to $13.3 billion in 2020, (up 30.3%).

"Our forecast reflects that [advertising] dollars will begin to catch up to where the eyeballs are," said Vollmer. "There's a lot more shifting of spend that can come out of areas that are maybe already allocated to digital, like money that's targeted more at desktop inventory today that can be shifted over to mobile. There's also money that can be shifted over from other budgets as well."

Tags: advertising, broadcast television, Internet, mobile, PricewaterhouseCoopers, trends

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