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Future of TV Digital TV

Internet ad spend set to outpace TV by the end of 2017


By John McCarthy, Opinion Editor

March 21, 2016 | 2 min read

2017 will see a global shift that will see more advertising bucks invested online rather than on TV, according to a forecast from ZenithOptimedia.

For the first time ever, the ad spend will overtake TV, set for three times more growth than exhibited by other sectors in 2016, including social media, online video and paid search ads.

The report read: "The global economy faces clear challenges, but advertisers' confidence has remained largely unshaken, and our forecasts for global growth in 2016 have barely changed since we published our last forecasts in December."

Micke Paqvlen, chief executive and founder of automated ad platform Kiosked, said: “We are on the brink of an internet advertising boom, as spend online looks set to outstrip TV by 2017 as spend on internet advertising increases, particularly in the run up to the 2016 Olympics, UEFA European Championship and US presidential elections, the demand for better performing ads will undoubtedly surge.”

Citing the ever-present issue with ad fraud however, he added: “For this growth to be realised, some major challenges need to be overcome; adfraud is rife and intrusive ads are commonplace.

“With the introduction of more transparent advertising ecosystems, advertisers and publishers will be able to develop a trusted relationship and have complete visibility of the full spend and return. This will result in a positive experience for publishers, advertisers and viewers alike, creating a “win-win-win” situation.”

The global forecast was reduced from 4.7 per cent growth to 4.6 per cent.

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