Barron’s took a look at advertising for 2016, while 2016 is projected to be stronger than 2015 it could come in below initial expectations.
Traditional ad sales are continuing to move lower and digital may be off slightly.
From the article:
Still, digital media is on track to overtake television as the No. 1 media category for the first time, reaching $68 billion in advertising revenue in 2016, according to Magna Global, a unit of the Interpublic Group of Companies. The hottest category, mobile, is expected to rise 44% next year; desktop ads are forecast to shrink by 1%. Advertising on social media, forecast to rise 31%, to $13.8 billion, and online video, 40% higher, to $8.8 billion, are in boom times.
Read the full story on Barrons and see which public companies are positioned to benefit.
Huge news.
TALE_OF-VISION!!!!
Every year I look at my .tv names and wonder when they will become relevant ?
Sort of related too is the continued demise of newspapers across the country. When the internet took off, lots of local newspapers scaled back and some closed completely. I would assume a good portion of the traditional TV viewership has also migrated to online. I know personally I can search and find relevant video on youtube on a variety of topics that interest me so I’m less inclined to channel surf on TV.
Once criticism I will voice is the autoplay of videos (ads) when you visit various online news sites. This is the worst possible business strategy and I do not think it will survive as a revenue generator because it alienates the audience and prompts viewers to click away to another site.
The digital media will definitely overtake the tv, perhaps in 2016.
Its true the digital media is overtaking the traditional television. But where are the profits for this digital media? The video ad used to be $30 cpm, now it’s $20 cpm in most cases, and in some cases it’s less than that. Remember this is only for the giant sites. CPM for banners, or still image ads is ranging from $3 down to $0.5 for the average sites that are so lucky. It’s not a surprise that even the online media like Washington Post, Yahoo, CNN Money, are suffering. The ad pay continues to decline every year, or after 2 years.
Thanks for the news update! Can’t wait to digital finally fully takes over traditional!
Happy New Year!