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BizReport : Advertising : July 23, 2021


Forecast: Online ad spend to top TV by '25

Over the next four years look for ad spending in the digital space to outpace television significantly. That is a key takeaway from a new advertising forecast out from PricewaterhouseCoopers. The digital ad spend is expected to increase to at least $153 billion - that is double the expected spend for television.

by Kristina Knight

Researchers with the report note that over the past 18 months, likely because of the pandemic and the fast uptick in streaming content, many marketers made the choice to up their digital ad dollars. That change is expected to continue as the world moves forward from the pandemic, with more ad dollars pushing into the online space and out of more traditional formats. By 2025, the experts note that the digital ad spend is expected to be about 2.5 times higher than the TV spend.

"The pandemic slowed the entertainment and media industry last year, but it also accelerated and amplified power shifts that were already transforming the industry," said Werner Ballhaus, Global Entertainment & Media Industry Leader Partner, PwC Germany. "Whether it's box office revenues shifting to streaming platforms, content moving to mobile devices, or the increasingly complex relationships among content creators, producers and distributors, the dynamics and power within the industry continue to shift. Our Outlook shows that the hunger for content, continued advances in technology and new business models and ways of creating value will drive the industry's growth for the next five years and beyond."

Overall spending in the digital space increased by 9% for 2020, and made 2020 the first year the online ad spending surpassed offline. This trend is expected to continue, with digital ad spending increasing by at least 7.7% (CAGR) through 2025.

Mobile is another bright spot for advertisers; mobile currently accounts for about 70% of the total online spend (US), and that by 2025 mobile will account for roughly 74% of US advertising spending. Breaking down mobile a bit, paid search continues to lead with $44.3 billion spent, mobile display (excluding video) accounts for $44.1 billion, and mobile video for $19.5 billion.

Other interesting predictions include:

· Virtual Reality revenues increased 31% in 2020, the CAGR through 2025 is expected to be at least 30%
· Gaming and e-sports revenues increased to $147 billion (2020), a 5% CAGR; gaming revenues are expected to reach $194 billion by 2025
· Internet access accounted for 34% of Entertainment & Media spending (2020)
· Video streaming is expected to grow at a 10.6% CAGR through 2025 to reach $81 billion in revenue

"The pandemic slowed the entertainment and media industry last year, but it also accelerated and amplified power shifts that were already transforming the industry," said Ballhaus. "Our Outlook shows that the hunger for content, continued advances in technology and new business models and ways of creating value will drive the industry's growth for the next five years and beyond."

More data from the PwC Global Entertainment & Media Outlook can be accessed here.






Tags: advertising, advertising forecast, advertising trends, global entertainment & media advertising, PricewaterhouseCoopers advertising forecast








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