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 was the fastest-growing category in 2014, with spending up 16.1% from 2013 to $127.3 billion. By 2017, McKinsey expects digital to overtake TV as the largest advertising media; by 2019, it should account for more than half of all media spending. “This rapid shift to digital is driven in part by the growing number of connected consumers, the expansion of mobile telephony and higher rates of mobile-broadband adoption,” the report says.
Within digital, mobile advertising and online video advertising will continue to grow rapidly, the report says. That is great news for digital products, mobile apps and video content. Increased advertiser demand for these platforms will help justify investment in digital, and also deliver fresh sources of ad revenue.
While the McKinsey report does not forecast broadcast radio advertising, it does note that other traditional media channels are experiencing declining shares of spending. Through 2019, McKinsey forecasts that global spend on print magazines and newspapers will be flat to slightly down. Over the next five years, McKinsey expects compound losses of 1.6% for magazines and 0.1% for newspapers. Television media spending will remain healthy, with a compound annual growth rate of 5%. Other categories expected to show growth over the next five years include out-of-home, video games and cinema advertising.
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Within digital, mobile advertising and online video advertising will continue to grow rapidly, the report says. That is great news for digital products, mobile apps and video content. Increased advertiser demand for these platforms will help justify investment in digital, and also deliver fresh sources of ad revenue.
While the McKinsey report does not forecast broadcast radio advertising, it does note that other traditional media channels are experiencing declining shares of spending. Through 2019, McKinsey forecasts that global spend on print magazines and newspapers will be flat to slightly down. Over the next five years, McKinsey expects compound losses of 1.6% for magazines and 0.1% for newspapers. Television media spending will remain healthy, with a compound annual growth rate of 5%. Other categories expected to show growth over the next five years include out-of-home, video games and cinema advertising.
4 Local Media provide targeted digital media solutions to four primary verticals: Automotive Dealerships, Medical Businesses, Financial Services and Home Service Business Owners.
For more information, Email Requests Here
Contact Damon Balch at (480) 285-9762
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