Traditional TV Ad Spend to be Overtaken by Internet Ads by 2020

According to a recently released report from ZenithOptimedia, the total ad spend for digital advertising will surpass that for television by 2020.  This is a major milestone in digital marketing since TV has long been the dominant place where brands would spend their advertising dollars.  For those who advertise on TV, however, it isn’t all bad news.  The growth in this area will continue to be fairly strong, but not nearly at the level expected for digital ads.

Traditional TV Ad Spend to be Overtaken by Internet Ads by 2020

There are already seven countries that digital ad spend is larger than TV (Canada, Australia, Denmark, the Netherlands, Norway, Sweden and the UK).  Prediction suggest that by 2017 China, Finland, Germany, Ireland and New Zealand will join that group.  This will account for about 28% of total ad spend globally.

Not surprisingly, mobile ads are leading the growth for the digital industry.  From 2014 to 2017 mobile ads are expectred to enjoy a growth of about 4.82 billion dollars.  This accounts for about 70% of all ad growth in all industries globally.  They will move from 5.1% of total ad spend to 12.9%, which is a huge move.

Desktop ads are also expected to continue to grow, but at a pace more in line with television ads. Outdoor advertising, radio advertising and cinema will also see modest growth over the next several years.  Print ads for magazines and newspapers are expected to drop, which is not surprising given the fact that fewer and fewer people are using print media today.

Commenting on the study, the CEO of ZenithOptimedia, Steve King, said “The Internet is quickly establishing itself as the dominant advertising medium.”  He later said, “The amount of time viewers spend watching online video on their laptops, tablets and smartphones is increasing rapidly, and advertisers are shifting their budgets online to follow them.”

While this is certainly true, it is important to note that while ad spend is moving toward digital, the TV and other verticals are continuing to get bigger.  A more accurate statement would be that overall ad spend is continuing to grow rapidly with digital ads getting the bulk of the new money coming into this industry.  However it is worded though, the facts remain that digital advertising is clearly the way of the future.

Any marketers or brands who aren’t taking advantage of this powerful medium will struggle to stay relevant going forward. By 2017, the report predicts that internet ad spend will only be 4% smaller than TV ad spend globally.  This year it is sitting at 11% lower, so that will be a major growth over just the next couple years.

If you are interested in reading the full report you can see it here.

About The Author

you're currently offline

Scroll to Top