How Long Before Internet Advertising Surpasses the TV Ad Market?

Jun 4, 2014  •  Post A Comment

Internet advertising is ramping up to overtake television as the dominant ad market, with PricewaterhouseCoopers' new Entertainment and Media Outlook report saying the shift will take place within seven years, according to The Hollywood Reporter.

The report predicts that TV advertising will grow to $214.7 billion in 2018, up from $173.7 billion this year. Internet advertising, meanwhile, will rise to $194.5 billion from $133 billion in the same time period. While the report only forecasts out five years, Internet advertising will overtake the TV market as early as 2020, based on the group’s 10.7% compound annual growth rate for online advertising. TV’s compound annual growth rate is just 5.5%.

The story notes: “PwC's annual five-year forecast has been rather accurate — though a year ago it predicted [entertainment and media] would grow 5.6 percent worldwide in 2013, exceeding actual growth of 4.9 percent. In the U.S., the prediction was for 4.6 percent growth, but actual growth was 4.3 percent. Stefanie Kane, a partner at PwC, says the overestimations owed largely to greater-than-expected weakness in newspapers, magazines and billboards.”

THR adds: “As for TV, subscriptions and license fees will attract more revenue than advertising, though growth there will be slower (3.2 percent annually through 2018 compared with 5.5 percent), and Kane said that 6.2 percent annual growth for video games makes that industry 'a bright star' for the next five years.”

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