According to ZenishOptimedia, industry forecasters, television’s share of total advertising spending will drop for the first time in 30 years to digital media. The recently released report, predicts that overall spending on television ads will grow at a significantly slower rate than online advertising, which will result in an overall drop in standings.
Television ads will account for 40.2% of all spending on advertising by the end of 2013. However, this is expected to drop to 39.3% by 2016. The focus in advertising is starting to shift towards online advertising; both mobile and desktop.
Mobile advertising currently accounts for 2.27% of all advertising, but that is expected to rise to 7.7% by 2016. Mobile advertising refers solely to advertising specifically for tablets and smartphones. Desktop advertising is expected to grow from the current 17.9% to 18.9% by 2016.
The money being spent on mobile and desktop advertising is split between a variety of platforms including social media and Google ads.
This isn’t to say television ads are going to the wayside; they still dominate in the world of advertising. However, they have experienced steady growth for decades, and this is the first time they are predicted to lose some of that growth.
As more people have embraced DVRs and alternative options to television such as Netflix and Hulu, networks have had to get more creative in their advertising efforts. For example, there is more placement advertising done now than ever before. While placement advertising has always been an important part of television advertising, advertisers are relying less on actual commercial time due to the ability of consumers to easily skip over commercials in many situations.
Advertising is now and has always been a highly competitive industry. While these are current predictions, this isn’t to say something won’t change between now and 2016.