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In the U.S., digital advertising will surpass TV in 2016.
For the first time in history, outside of recession years, global television advertising revenue fell year-over-year as digital advertising surged once again. Digital, in fact, should overtake TV by the end of 2017, according to a study released Monday from Magna Global.
In the U.S., digital advertising will surpass TV in 2016.
A different study from ZenithOptimedia, also released Monday, says TV's share of the advertising pie probably peaked at 39.7 percent in 2012, and it will be overtaken by digital for the first time in 2018.
Both studies paint a rosy picture for digital advertising and a troubling one for traditional cable and broadcast TV, at least in the long term. Many TV cable channels have been losing subscribers lately — including Disney's crown jewel, ESPN, down 7 million subs in two years — while others at Viacom and elsewhere have seen declining ratings.
The advertising dollars jumping to digital will be just in time to run into a box canyon formed by AdBlock, NoScript, Ghostery, and other improving ad-blocking technologies.
(Score: 2) by frojack on Tuesday December 08 2015, @06:25AM
global television advertising revenue fell year-over-year
Cord cutters are eating into TV subscriptions. I think we've had covered cord cutters here on SN many times.
The number of viewers directly affects payments for advertising.
So this has been happening for a while, and its likely to enter a death-spiral mode one of these days.
Fewer viewers requires higher prices to afford the programming, which will drive away more advertisers.
Without advertising revenue, subscription fees are going to have to go up, which drive away viewers.
No, you are mistaken. I've always had this sig.
(Score: 2) by Tork on Tuesday December 08 2015, @07:47AM
🏳️🌈 Proud Ally 🏳️🌈
(Score: 4, Insightful) by quadrox on Tuesday December 08 2015, @08:50AM
Hopefully they're smart enough to listen to Demand.
Why hopefully? Let them die, the sooner the better. It's an outdated business model.
(Score: 3, Interesting) by Phoenix666 on Tuesday December 08 2015, @06:33PM
The death spiral has begun. We've been watching the demographics of TV viewers erode for the last two decades. When the average age of the TV viewer exceeded the desireable 18-35 demo that advertisers kill for (because that's when people form brand attachments), the writing was on the wall. When cord-cutting was coined, the cable guys laughed it off as a statistical blip. When the raft of studies started appearing that showed Millennials spend more time on social media or that they don't own TVs and the like, panic started to set in.
Now we've gone past dread into the full-on death spiral. Netflix, Hulu, Amazon, HBO, and even CBS itself have their online delivery channels now. And we also did cover it here on SN recently that cable companies are going to start unbundling to offer a-la-cart channels. But the distribution system is beside the point. Media habits have changed, and they're not going to go back to what they were before.
Washington DC delenda est.