Magna Global expects TV ad revenue to decline 2.9% in 2015, including the impact of political and Olympic spending, as reported in the Wall Street Journal . US ad growth in general is hampered by ‘digital deflation’ — the idea that media companies don’t earn as much for their content in digital formats as they do traditionally. “Several large advertising categories that have traditionally been focused on TV increased their digital investment last year and are expected to accelerate their shift to digital in 2015.” Another recent article in the Financial Times highlights the impact of changing audience habits on ad sales.
On the upside, US digital media spending increased 15% in 2014 to $49 billion. In particular, video grew 39% while social media rose by 57%. Magna Global projects digital and TV ad revenues to reach the same level ($68 billion) by 2016.
Read the full article.
For more on this topic, check out the Business News Tab in Morning Coffee .
See all 5 Cups articles.