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Digital Ad Spend Set to Trump TV in US by 2017
Image Credit Nick Thompson Creative Commons license

Digital Ad Spend Set to Trump TV in US by 2017


Digital media ad revenue rose by 17% to $142 billion this year, with TV revenue taking a significant plunge, according to Magna Global.

The strategic investment & intelligence division expects this figure to rise another 15% in 2015, and predicts digital media is on track to reach a 30% market share globally by 2015.

TV ad revenue however only grew 4.8% in 2014, almost half the 8.6% Magna Global forecast for spring. As a result, the agency foresees digital media overtaking TV revenue in the US by 2017.

The UK, Spain, Australia, India and Japan are also set for faster growth in ad spend than Magna Global previously predicted.

"The shift to digital is having a deflationary impact on the entire market as digital formats, whenever comparable to traditional format, look cheaper and therefore erode the pricing power of traditional media categories," stated the agency.

Negative revision

Meanwhile, Russia, with its 2015 advertising growth forecast cut from 7% to less than 1%, has seen its "single biggest negative revision", according to the findings.

A combination of the "withdrawal of Western investors amidst geopolitical tensions" and declining energy prices have been cited as the reasons for the revision.

"Not only is there the expectation of much slower Russian real GDP growth - IMF forecasts down over 1% since the spring - but Russia is also at the epicenter of many of the regional headwinds," said Magna Global in a forecast.

"Compounding these impacts are ad market specific headwinds, including the upcoming ban on Pay TV advertising as well as OOH inventory reductions."

Russia joins China, Canada, Brazil and Germany in countries where ad spend is expected to grow at a slower rate than previously forecasted.

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Adele MacGregor

Adele MacGregor

Adele works as a news and features reporter for Existem, covering the latest updates from the performance marketing industry. Adele has written for Media Wales, Grazia Magazine and publications in Spain and the US, with topics ranging from social media and digital skills to local music and gymnastics.

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