Forecast: Look for content/tech consumer spending to slow
According to PQ Media’s Global Consumer Spending forecast, consumer spending on media and tech will slow beginning this year; this after a 4% increase in spending for 2019. On a global scale, consumers are spending nearly $2 trillion on media content and tech, but the new forecast is based on an overall slowdown from 2018, when the space saw a more than 5% increase in spending. For 2020, forecasters believe the spend will drop another percentage point, to top out at only about 3% higher than the 2019 spend.
“In many of the world’s 20 largest markets, including the US and Germany, media technology growth is slowing so rapidly that by 2023, combined expenditures on media content and tech will register flat growth in these two countries,” said PQ Media President Patrick Quinn “In the past few years, media tech spending was driven by tablets, smartphones and voice assisted devices. And while there is potential for new technology, such as 5G, AI and IoT, to stimulate growth in consumer spending on existing or unforeseen new media platforms, the current applications of AI and IoT tech are being used mainly on the back end of existing products or for new services related to smart houses and connected automobiles, which are not media related.”
Other interesting predictions from the PQ Media forecast include:
â–ª 2023 will mark the ‘tipping point’ for consumers’ media/tech spending, when it stops growing entirely
â–ª Currently, consumers spend about $337 per year on digital and traditional media content
â–ª Smartphone shipments decreased for the 6 quarters leading up to Q4 2019
â–ª Digital content subscriptions are expected to increase 15% for 2020
â–ª Digital content holds a 68% share of consumer spending for media and tech
US and Japanese consumers are spending the most on digital content and tech.
PQ Media’s Global Consumer Spending on Media Content & Technology Forecast 2019 – 23 can be accessed here.