It will make up 52% of all digital ad spending this year and surpass the total spent on print as advertisers scramble to reach people on the e-device they use most, their phones.
The lines were bound to cross sometime. And 2015 is when core Internet spending will surpass broadcast TV — including its offshoot online services — according to a forecast out today from FTI Consulting. The firm projects that Internet spending will rise 11.4% to $41.8 billion while broadcast lifts just 0.9% to $38.9 billion.
New figures reported by eMiarketer call for digital ad spending in the US totaling $58.61 billion this year, with retailers’ ad outlays comprising 22% of that figure, or $12.91 billion—by far outpacing all other industries.
Global digital advertising expenditures will surpass TV spending by 2017 — and the phenomenon is already occurring in some of the world’s largest ad markets. Speaking at an investor conference last week, Interpublic Group CEO Michael Roth noted that company research shows that one-third of all ad expenditures are currently allocated to digital. Roth said that IPG’s research and marketplace intelligence unit Magna Global is predicting that by 2017, more dollars will be allocated to digital than TV.
TV is losing some key ground to digital where it matters most. PwC has revised downward the growth rate for ad spending on TV, slowing to 4% from 5.5% through 2019. Mobile is also expected to grow 25% annually for the next five years, among other disruptive trends.