The U.S. ad market is poised for a good year in 2016, with much of the anticipated increase being attributed to digital media, political spending and the Olympic Games. Citing a forecast from eMarketer, MediaPost reports that TV spending is expected to rise 2.5% to $70.6 billion, with digital media surging 15.4% to $68.82 billion. For U.S. ad spending overall, a surge of 5.1% to $192.02 billion is forecast, as some segments appear to be slowing.
“Previous eMarketer estimates for TV and radio projections were higher. Other forecasts project TV advertising spend will rise anywhere from 3.0% to 3.2% in 2016 over the year before,” MediaPost notes. “Now the eMarketer study says traditional TV ad sales — even with the Rio Olympics and political advertising — will ‘have a challenging year ahead as a result of declining viewership and increased competition from video-on-demand (VOD) and digital streaming services.’”
MediaPost adds: “While TV still has the largest share of media spending — 36.8% to digital media’s 35.8% — this is projected to change next year with digital media surpassing TV. eMarketer says in 2017, total digital media spending will get to $77.37 billion; with TV advertising spending at $72.01 billion.”