The TV industry wishes it could change the channel right about now. But, sadly, it cannot.
According to the latest industry report, worldwide spending on digital advertising is now predicted to increase once again by a considerable degree (15%) next year, effectively going toe-to-toe with TV.
Digital advertising spending, driven by increasing numbers of mobile ads and social media campaigns, could rival outlays for television within 5 years.
Magna Global, a media research unit of Interpublic Group, says digital media “grew strongly again this year,” up 17.2% to $142 billion. This reality, of course, was largely driven by mobile campaigns, which were up 72% and social formats, also up a respectable 64%.
“We forecast global digital revenues to reach 30% market share globally in 2015 (+15.1% to $163 billion),” Magna Global projected this week. “Based on our long-term forecasts, digital media will catch up with television in 2019, when both account for 38% of global advertising revenues.”
Why the changing landscape? For one thing, consumers no longer sit glued in front of their television sets. But they are glued to smartphone screens a lot more.
While TV ad spending is anticipated to grow 3 percent next year and 6 percent the following year, Magna Global analysts recognize it’s no longer king of the hill.
Television has been the top medium for ad spending for fifteen years, after it eclipsed newspapers. Now mobile devices offer irresistible features that keep worldwide audiences inextricably tethered to their tablets and smartphones.
As a result, mobile ad spending has positively zoomed up the charts, with some analysts projecting that mobile ad spending will increase by somewhere close to 40% each year from now through 2017.