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Digital ad spending forecast to leapfrog TV by end of 2017

A new analysis of advertising trends has forecast that expenditure on digital will overtake TV by the end of 2017 as diverging growth rates accelerate, according to Interpublic Group’s Magna Global.

The psychologically important moment would see TV, long time king of the advertising world, lose its crown to the new challenger which is expected to grow 17.2 per cent this year to $160bn and a further 13.5 per cent in 2016.

By contrast television is anticipated to see its market share of the $503bn per year global ad market slip from 38.4 per cent to just 38 per cent in 2016.

Vincent Letang, head of global forecasting at Magna Global, commented: “TV global growth is diminishing. In most major developed markets, TV growth is slowing and in some cases stagnating.”

A separate forecast by Publicis Groupe’s ZenithOptimedia suggests the tipping point may come slightly later in 2018 but irrespective of the precise timing the trend is clear as more and more advertisers exhaust print savings and start to tap into TV budgets to feed the voracious digital market.

Ad spend is now shifting in particular toward the online video, social media and mobile markets to such an extent that ZenithOptimedia foresees they will account for 50.2 per cent of internet advertising in 2018, surpassing the once dominant desktop market.

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