Online Advertising 2016On-line Advertising 2016
" On-line advertising is often based on the idea of an "impression", but few of us know exactly what that means.
Outlook for US online and classic media advertising, 2016-2020
Annual Survey containing predictions for online and off-line advertising market up to 2020. Prospects for conventional advertising in the press are similar to those of the past, with TV and outdoor advertising having the brightest future prospects, while the prospects for printing (at least in printed format) are bleak. Consumers' online behaviour is shifting, which means that advertisers' expenditure will also rise, with some interesting landmarks anticipated for the forecasting horizon.
Below are some of the key features for the main PwC coverage areas, ranked by estimated 2020 market and specifically for the US. Nevertheless, PwC forecasts that online advertising expenditure will surpass $75 billion next year, exceeding the $74.7 billion forecast for television. From 2015 to 2020, online advertising is predicted to increase at an average growth of 9.4% per annum relative to the 3.2% growth of television.
Online advertising spending is projected to increase over the entire forecasting horizon, from a projected 41% this year to a projected 49% in 2020, supported by a CAGR of 17.5% for 2015-2020. It is interesting to see that by 2020, although just ahead of that, although cell phones will be the major part of US online advertising, it is not PwC's expectation that they will become the major part of it.
Within nomadic advertising type, the screen (including video) is projected to stay bigger than the browse, increasing from 58% of spending on nomadic advertising to 62% in 2020. 3 percent and is thus almost at the level of other forms of advertising for portable displays by 2020. From the " wireline " (non-mobile) forms of advertising on the web it is anticipated that the pay phone service will maintain its predominance, which increased from 21.5 billion dollars this year (53% proportion of wireline advertising) to 24.4 billion dollars in 2020 (52% proportion).
This is also an interesting change from last year's survey, which forecasted that pay searching would give up its major stake in wireline advertising by 2019. In spite of maintaining its controlling stake until 2020, the 3.6% pay per view look will be obscured by the forecasted 19.3% pay per view look impact of the 19.3% look, which will multiply spending on desktop advertising videos from an estimate of $5.1 billion this year to $10.2 billion in 2020.
Among the other "wired" advertising segments, displays (non-video) are expected to show the lowest rate of increase, even falling with a -3.6% decrease in net-AGR. Advertising revenue from displays is expected to decline from $10.9 billion this year to $9.5 billion in 2020. The TV advertising expenditure is expected to increase from 73 billion dollars this year to 74.7 billion dollars next year, at which time it will relinquish its position as the most important advertising medium.
Overall, the television programme will increase at an average 3.2% per annum from 2015 to 2020. Thus, while television consumption is slightly declining, a tendency that is intensifying among young people, advertising companies are still expecting to keep spending on the media, even if its expansion is slower than that of the digitised one. This is probably due at least in part to the continuing efficiency of television advertising.
The TV advertising sector has a bigger dilemma if it is sufficiently involved with the audience. Although marketers are making effective use of multi-platform viewings, there is an emerging tendency to use other displays. Ultimately, the ads are competing with a number of other mediums for increased exposure. Nevertheless, it is forecasted that online only accounts for a small proportion of total TV advertising revenue over the forecasting horizon.
In fact, only 5.4 billion of the $81.7 billion (or about 6.6%) TV advertising revenue projected for 2020 is in fact anticipated from online TV, as the 8.9% online TV advertising revenue growth rates (CAGR) are well below last year's 14.4% projection. In the broadcasting advertising sector, on the other hand, broadcasters are predicted a slightly higher advertising ratio (3.9%) than they would for terrestrial cables (3.7%).
In the USA, the advertising space is projected to stay relatively shallow during the forecasting horizon, rising slightly from $17.8 billion this year to $18.4 billion in 2020. It is projected that the 2015-2020 broadcast advertising will have a 1% carbon leakage rate, without broadcast advertising by satellites, which is only a fraction of the overall broadcast advertising.
It is not surprising that online advertising for DTT will be the most rapidly expanding sector with a 7.8% cagrum. As with television (and unlike printing and out-of-home), however, advertising revenue will only account for a small proportion of overall broadcasting revenue. 7 percent of overall advertising revenue this year, online broadcasting is estimated at 9.7 percent of broadcasting revenue by 2020.
Advertising for land-based radios will still be the predominant format, although revenue from land-based radios is expected to largely stagnate between this year ($16.2 billion) and 2020 ($16.4 billion). Newspaper advertising consists of two major segments: hypertext periodicals and professional journals. This year, the advertising industry for US consumers' journals is expected to reach $16.8 billion and will stay largely unchanged until 2020.
However, digit advertising sales will grow by just enough (2015-2020 14.8% CAGR) to compensate for falling printing sales (-8.8% CAGR). Indeed, by 2020 it is expected that by 2020 electronic advertising will surpass printed advertising as the premier advertising revenue stream for consumers' magazines ($9.2 billion and $7.7 billion, respectively).
It is possible that the growth of advertising may not be quite as strong as PwC predicted last year when it predicted the 2019 figure for the vast bulk of consumers. Meanwhile, the specialist journal sector is smaller, but is following similar tendencies. The total ratio was only 0.7% between 2015 ($4.6 billion) and 2020 ($4.4 billion).
In 2020, Digitally will take over the printing in the advertising expenditures of professional journals, the former having a 11% average annual growth rate (CAGR) compared to the forecast -6% growth rate (CAGR). In such, it is expected that advertising revenue from digitized advertising will rise from 35% of advertising revenue for professional journals this year ($1.6 from $4.6 billion) to 51.4% in 2020 ($2.4 from $4.7 billion).
Among the studied type of press, the toughest blow is that advertising in newspapers is the only one for which revenue is projected to fall from $18.8 billion to $14.9 billion between this year and 2020. In contrast to periodical advertising, newspapers' advertising is just not expanding fast enough (2015-2020 3.4% CAGR) to compensate for loss in printed advertising (-9.3% CAGR).
Prognosis for 26. This year, 5% of the newspaper's advertising revenue, digitally is projected to increase to 37. 9% proportion of revenue in 2020. Meanwhile, each of the three large sectors of printed advertising (classified, country and retail) is projected to decline at an average of 8.6% per year, with the lowest prospects (almost -9.7%) for classifieds.
It is noteworthy that, unlike magazines (both consumers and retailers), advertising generated more income for magazines than run lengths. However, with news advertising on such a steep fall, by 2020 retail sales ($12.1 billion) will be almost as big as advertising income ($14.9 billion). At $11.1 billion, the overwhelming major part of the retail sales will remain print-based compared to $1 billion for digitally.
OOH advertising has the highest forecast among conventional mediums, although its sound prospects are mainly due to the forecast sharp increase in out-of-home advertising. Overall, OOH advertising revenue will increase from $9.2 billion last year to $10.9 billion in 2020, with a 4.3% OOH for 2015-202020 average annual rate of use.
Over the forecasting horizon, it is anticipated that digitals will increase from 38 to 38 at an average growth of 9.4% per year. 3 percent OOH advertising revenue this year to 46. 2 percent in 2020. As the smallest media of the individuals featured in this paper, movie advertising is predicted to increase from $857 million this year to $908 million in 2020, with a 2015-2020 1.6% average growth margin for 2011.
Advertising revenue in the cinema will still be overshadowed by the revenue from the cinema boxes, which are anticipated to increase by 1.2% annually from 2015 ($10.3 billion) to 2020 ($11 billion). Demographic data of the US media audience.