Warc Blog

TV retains key role

4 April 2013
NEW YORK: Advertising expenditure on digital media is growing at a far faster rate than TV in the US, but television will remain the dominant medium over the next few years, new figures have shown.

In 2012, digital ad spending was 58% that of television, but this figure will rise to 64% this year and to 80% by 2017, according to eMarketer, the insights provider.

In dollar terms, US advertisers are predicted to spend $66.35bn on TV this year, compared with $42.52bn on all digital channels. By 2017, these figures will have increased to $75.25bn and $60.40bn respectively.

One especially fast growing area of the digital ecosystem is video ads, where spending is doubling every two to three years.

It is estimated expenditure on digital video will be $4.14bn this year, up from $2bn in 2011.

Looking further out, digital video is forecast to reach $8.04bn in 2016 and $6.06bn in 2017.

In line with wider device ownership trends, tablets and smartphones are driving much of the growth in this area.

Mobile video spending is predicted to account for 12.6% of digital video ad spending this year, a proportion that will rise to an estimated 29.7% by 2017.

A recent report from Gartner, the research company, said that marketers were finding digital techniques more cost effective than traditional marketing, with 41% of respondents reinvesting the savings made into more digital marketing.

Some 28% said they had reduced their traditional advertising budget to fund digital marketing activities, while 27% had obtained incremental funding for digital marketing from other functions or business units.

Data sourced from eMarketer; additional content by Warc staff

 
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