Internet Advertising to Take Over Broadcast Advertising in 2017

Entertainment and media spending will hit US$720 billion by 2020, up from US$603 billion in 2015, while internet advertising will overtake broadcast advertising in the U.S. for the first time, according to the finding from PwC's annual Global Entertainment and Media Outlook report, the company's five-year economic forecast for media and entertainment industry revenue and ad spending.


The US to remain the leading internet advertising market in the world

Internet advertising will advance double-digits over the next five years(2016-2020) and will remain a hotspot for media industry growth and business model shifts,  according to the US entertainment and media outlook. In 2015, internet advertising generated revenues of US$59.6 billion and that number is projected to rise to US$93.5 billion by 2020 (9.4 percent CAGR).


US internet advertising revenue will continue to surge forward, with mobile seeing the most rapid growth--all forms of mobile advertising will continue to grow in the coming years.

One key driver is the shift in search from laptops to mobiles, with mobile paid search internet advertising having seen tremendous recent growth. Also of note is video internet advertising revenue, which is among the fastest-growing sub-components of the US Internet advertising market.

The biggest advertising gains are expected in mobile advertising, which was responsible for 34.7 percent of total internet ad revenue in 2015 at US$20.7 billion and is projected to rise to 49.4 percent by 2020.


Mobile video internet ad revenue will increase from US$3.5 billion in 2015 to US$13.3 billion in 2020 (a 30.3 percent CAGR).

However, while internet advertising continues to grow at an increased rate, there are some headwinds brewing, triggered by challenges such as transparency, ad fraud, and privacy.

In today’s media landscape, can anyone be a “media company?”

EMC-Outlook-US-web-TV-and-Video-OTT_new_normalAccording to the US entertainment and media outlook, the next five years will hold major changes for how people watch TV and video.

As consumer wants and expectations continue to change, so too does the TV and video industry. Today’s and tomorrow’s definition of what it means to be a “media company” will continue to evolve, as companies -- not just entertainment and media companies -- invest in content and direct customer media relationships.

EMC-Outlook-US-web-TV-and-Video-Operators_fight_for_eyeballsWe will continue to see a rapid increase in new entrants and competitors in the space as subscriber-based businesses continue to consolidate. Operators are also attempting to target cord-cutters and cord-nevers by marketing their OTT streaming and download services--two areas that will represent tremendous growth potential for this industry’s foreseeable future.

U.S. TV advertising revenue is forecasted to increase from US$69.9 billion to US$81.7 billion in 2020, at a compound annual growth rate (CAGR) of 3.2 percent.

US video gaming hits the next level—what’s driving the growth?

video-games-2According to the US entertainment and media outlook: 2016-2020, the video games industry thrives over the next five years. Total Video Games revenue is epected to grow by 3.6% up to US$20.3 billion in 2020.

The shift to digital is well under way in the US video games sector, but physical persists--the industry as a whole will see solid growth over the next five years. Video games advertising revenue will continue to grow over the forecast period, more so than in other markets given the mature nature of both gaming and advertising the US.

Virtual reality marks another exciting area of growth in this space, with US companies at the forefront of driving the VR platforms, developing camera technology, and building compelling content. Competitive gaming--known as eSports--is also an area of particular interest and growth, and one that will continue to grow in prominence as local awareness grows here in the US. eSports has the potential to drive significant direct and indirect revenue over the forecast period.

Join us at the 2017 Sports Marketing Forum.. The first day of #Portada17 (Sept. 13, 2017 in NYC) will be all about Sports Marketing and insights and best practices on how best to use sports content to connect with the exploding multicultural demographic!


Editorial Staff

Portada Staff


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