Entertainment & Media Outlook Highlights Underlying Trends of Digital Shift
PwC just released its annual Global Entertainment and Media Outlook 2014-2018 and it's a trove of information and insight on media, publishing, advertising, and consumer behavior. AdAge has a good post on the implications specific to the magazine industry, but we thought it would be helpful to also take a quick look at some of the more broad trends that the study highlights.
The big takeaway is that as the entertainment and media industry becomes more digitized, advertising growth is outpacing consumer spending. Unsurprisingly, this reveals that consumers are less inclined to pay for digital content. But somewhat of a relief (and not to get too rosy) the outlook predicts advertisers will still be seeking media audiences' eyeballs, with particular affinity for the increased segmentation digital formats enable. (See B2B growth forecast below.)
Of course, mobile takes the cake for the most remarkable insight from the study, with mobile advertising expected to grow from 17% in 2009 to 40% in 2018.
Following are some additional highlights taken directly from the press release, which can be found in full here along with a video commentary on the study.
Mobile Internet penetration is expected to reach 86 percent of the U.S. population in 2018, which will help drive digital advertising to increase its share from 17 percent of total advertising revenue in 2009 to 40 percent by 2018. With Internet advertising in the U.S. growing at a 9 percent CAGR (compared to a total advertising CAGR of 3.7 percent), the industry is approaching a significant tipping point.
Video's share of the overall Internet advertising revenue pie has more than doubled to 7 percent in the last six years, and video Internet advertising revenue is expected to grow at a 19.5 percent CAGR to reach US$6.77 billion by 2018, up from $2.78 billion in 2013.
Denis Wilson is the content director for Target Marketing, Publishing Executive, and Book Business, as well as the FUSE Media and BRAND United summits. In this role, he analyzes and reports on the fundamental changes affecting the media and marketing industries and aims to serve content-driven businesses with practical and strategic insight. As a writer, Denis’ work has been published by Fast Company, Rolling Stone, Fortune, and The New York Times.