“Forrester Research today prognosticated that interactive spending will achieve a 12 percent compound annual growth rate and total $103 billion by 2019. The development is driven by huge gains for the search, display and social media niches, though mobile is truly spearheading the change. The Cambridge, Mass., researcher found mobile advertising will account for 66 percent of growth across interactive categories in the next half decade” as reported by AdWeek.
Not to be outdone, Magna Global claims that digital spending will outstrip TV spending as soon as 2017: “We are anticipating digital media to become the number one advertising category in 2017 when digital ad sales will reach $72 billion (38 percent market share) compared to TV sales of $70.5 billion,” the report said. Magna Global also estimated that U.S. ad spending will hit 167 billion this year, up 5.1 percent; this is a downgrade from the firm’s previous forecast of 6.1 percent. The firm attributes the downgrade to a slower U.S. economy, which caused advertisers to cut ad spending as well as “freeze” budgets, and lower-than-anticipated spending from political and Olympic advertising budgets.”
Regardless of when it happens, it’s pretty obvious that the writing on the wall for traditional media (especially print) is that they will eventually go the way of the billboard and newspaper ad; still hanging around but definitely taking a backseat to all things digital. Phones, watches, glasses and other personal devices will be the advertisers dream target, with all content customizable to the end user. In the meantime, advertisers are already using online outlets like YouTube and Hulu that aren’t limited to just 30 seconds to reach a younger demographic that has cut the TV cord:
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