Global media spending is expected to grow at a steady pace over the next five years, up to $2.1 trillion by 2019 from $1.6 trillion in 2014, according to a new report by consulting firm McKinsey & Company. Spend will increase at a compound annual rate of 5%, the report says, with digital media driving growth and commanding an increased share of ad dollars.
Digital Ad Spending Expected to Soon Surpass TV
Television has lost its longtime grip on advertising budgets as digital ad spending continues to surge, according to some of the advertising industry’s most closely watched forecasts to be released on Monday. Television ad sales are expected to fall slightly this year, decreasing globally for the first time ever aside from a recession year, according to the Interpublic Group’s Magna Global.
TV will account for 38.4 percent of the $503 billion global ad market this year and will drop to 38 percent of the market in 2016, according to the forecast.
Mobile internet advertising will overtake newspaper advertising next year, accounting for 12.4% of global ad spend while newspapers account for 11.9%, according to ZenithOptimedia’s new Advertising Expenditure Forecasts. Mobile internet will be the third-largest advertising medium, behind television and desktop internet.
Mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn. Mobile advertising remains the driving force behind the growth of the entire advertising market, contributing 83% of all new ad dollars between 2014 and 2017.
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