Every year, PriceWaterhouseCoopers (PwC) releases its Global Entertainment and Media (E&M) Outlook. The research projects spending in the advertising, consumer demand for content, and consumer access fee categories. Between now and 2017, PwC analysts believe the global spending in these sectors will increase by 5.6% (compound annual growth rate) to $2.2 trillion.
On a macro level, the 13% increase in spending on digital advertising, content, and access will far outstrip the growth rates for traditional entertainment and media formats. As a result, the digital portion of these industries will comprise 47% of the total which is a significant increase over the 35% that digital held at the end of 2012.
PwC analysts also predict that by 2017, consumer spending for access will rise from 24% to 30% of the E&M industry. Accordingly, spending on content itself will shrink from 47% to 41%. Part of this shift is being driven by digitization. As consumers spend less on traditional mass media, they will pay more to access customized digital content.
At some point, this migration to online content will allow advertisers to shift into a mode of ‘small data’. They will need to collect the ‘right’ kind of data that allows them to effectively market to specific consumers without overstepping the privacy boundary. Analysts believe this trend will be well underway by 2017.
Despite the shifts in the E&M industry, analysts expect TV to maintain its top spot as an advertising channel. Projected to be worth just over $200 billion globally by 2017, the TV format will continue to be dominated by the U.S. with an expected $82 billion in ad spending. However, the shift to digital in the TV world will be slower than it’s been in other formats. Terrestrial will account for 69.6% of spending, and multi-channel will bring in 25% of revenue. That leaves TV companies to generate about 5% of their revenue from digital sources.
The implication in this report is that consumers will continue to watch TV as usual for the next several years and that the format is an effective way for marketers to reach their target audiences.
To learn more about Heavy TV Viewers, check out the Audience Interests & Intent Report available at the Research Store on ad-ology.com.