While the shift to a digital media world has been coming for some time, television has remained the advertising leader because of its vaunted most-watched status. Marketers should be prepared, though, for a major advertising shift in the next four years that will challenge television's top position.
The new Global Entertainment and Media Outlook report from PwC projects that, by 2019, digital advertising will surpass television advertising, with a major emphasis on mobile:
"...the clear direction of travel is toward digital - a fact underlined by Internet advertising’s position as the fastest-growing segment of advertising through to 2019, overtaking global broadcast TV advertising. By that year, digital advertising as a whole - including digital out-of-home - will account for 38.7% of total global advertising revenue, up from just 16.6% in 2010. A primary driver of digital advertising throughout the forecast period will be rapid rises in mobile and video Internet advertising. Mobile Internet advertising will surge at a 23.1% CAGR to 2019, overtaking display Internet advertising globally in 2018, and supplanting paid search in the US in 2016 as the leading Internet advertising category. And video advertising spend globally will rise at a CAGR of 19.5%, supported by a near-doubling of global smartphone connections to 3.85 bn in 2019."
However, PwC points out that, from the consumer's perspective, they care less about the delivery system and more about the content.
Marcel Fenez, PwC’s Global leader, entertainment and media, comments: "Digital or non-digital - for consumers it’s all about content experiences. Given the wide variations in consumer preferences, the challenge for entertainment and media companies is to blend data insights and consumer intuition to maximize the value of the experiences they offer. The prize for achieving this is heightened by the fact that the consumer has never been more up for grabs than today."
For marketers, that means two things: continuing to innovate with digital marketing, and producing quality content to reinforce brand differentiation.
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