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Amy Schein

TV Ad Spending to Remain Flat for Next Three Years

by Amy Schein | Dun & Bradstreet Editor

June 29, 2015 | No Comments »

TV-illustration_shutterstock_137439545_1100px-01Though TV is the biggest advertising medium in terms of global adspend, it’s no secret that the platform is facing competition from digital media. Total global ad spending on broadcast and cable-network TV is expected to grow by an average of just 2% a year through 2017, according to ZenithOptimedia’s Advertising Expenditure Forecasts.

TV is expected to account for about 37% of global adspend in 2017, down from about 40% of total spend in 2014. The second-biggest share of global adspend comes from desktop Internet, which accounts for about 20% of total spend. Marketers are beginning to move budgets away from TV to online video, which is expected to grow from about 2% of global adspend in 2014 to 4% in 2017.

Mobile is the biggest growth driver of the ad industry overall, contributing 70% of all new adspend between 2014 and 2017. Mobile Internet accounted for about 5% of global adspend in 2014, a share that is predicted to reach about 13% in 2017.

What does this mean for brands that want to effectively reach audiences with successful advertising campaigns? TV may still be far the most effective advertising medium — an assertion made by leading industry magazine AdWeek as recently as June 9, 2015 — but its grip on the ad world may eventually slip away.

Industry Impact: Advertisers may continue to migrate from TV broadcast and cable networks to desktop and mobile Internet through 2017.

Amy Schein is an Industry Specialist at First Research, where she covers various aspects of the media industry. She earned her BS and MA in media studies at the University of Texas at Austin. Follow Amy on Twitter.

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