“Digital media expenditures exceed that of television worldwide in 2017 – Adformatie Online

Elsbeth Eilander, editors | December 11, 2015, 13:03

So predicts Magna Global (Interpublic Group). Zenith Optimedia (Publicis Groupe) predicts this scenario as well, but only a year later, in 2018.

Television this year accounted for 38.4 percent of global advertising spending, but drops to 38 percent in 2016. Digital media, however, continued to grow rapidly with an increase of 17.2 percent this year and next year a further increase of 13.5 percent. The expectation is that digital television will surpass as the largest advertising category at the end of 2017, according to Magna Global.

Both Magna Global and Zenith Optimedia present their figures last Monday at the Global Media and Communications Conference in New York.

The annual predictions of these agencies are properly monitored by media directors and securities analysts. Media stocks have an eventful year behind; the fate of traditional media is uncertain in an increasingly digital world, coupled with an unstable advertising market decline in subscriptions and ratings.

In most developed countries, television less growing and even stagnating. Magna Global predicts that digital media will be in the US as early as 2016 television over as the largest advertising category, with 68 billion of sales, versus 66 billion for television.

Until was recently featured print to suffer budget shifts to digital. Now, however, get away money advertisers also visible on TV, according to Zenith Optimedia.

Ad Funds are now faster to online video, social media and mobile. ZenithOptimedia predicts that mobile ads in 2018 will account for 50.2 percent of online advertising spending. For the first time more than desktop advertising.

Deflation
As online and mobile advertising is relatively cheaper, there is pressure on media owners to lower their prices, As a result, growth is slowing in the advertising market. Magna Global believes that sales in the US with 5.2 percent growth in 2016, to 176 billion dollars. However, if you have events like the Olympics and elections do not count, you see that rate drop to 3.3 per cent (versus 3.8 per cent this year)

On average, Magna Global predicts global growth 4.6 percent to $ 526 billion in 2016. ZenithOptimedia thinks to 4.7 per cent, to 579 billion dollars. WPP’s GroupM made his prediction at 4.8 percent to 4.5 percent, to 520 billion dollars

Source:. New York Times

Image: Kellogg’s ad in 1995, Life Magazine, Wikimedia Commons PD PRE1978