According to Vincent Letang, the head of global forecasting at Magna Global, “TV global growth is diminishing. In most major developed markets, TV growth is slowing and in some cases stagnating.” From that insight people can sense that tv advertising is indeed going down.
In a forecast that was done by eMarketer, they reported that TV advertising spending will be surpassed by digital advertising. With its decreasing trend there will be no doubt about it being lesser than the digital advertising which is soaring higher each year. In the year 2014 it was reported that 39.1% of the total revenue of all media ad spending is TV advertising but when 2015 came, a decrease of 1.4%. By the end of 2016 it will go down to 36.8%. In 2020, the TV’s share of ad spending will drop below one third.
But an eMarketer senior forecasting analyst Martin Utreras expected the TV ad spending to grow in time for elections and summer Olympics. But still the TV advertising agencies will face even more challenges. After the events however, the revenue will drop by 1% in constant dollars in 2017 and it will drop by 0.8% in the year after next.
But in a forecast that was done by The Statistics Portal, the TV advertising revenue in the United States from 2015-2019 is slowly increasing. By looking at the graph, it was reported that 71.1 U.S. billion dollars was spent for TV advertising and an increase of 4.1 U.S. billion dollars is expected by the end of 2016. Even though news about TV advertising spending is losing its percentage on the totality of the media ad spending, it still did not lose their title as the largest media advertising out there.
The fact that TV advertising is losing because of digital advertising depresses the TV agencies. But still advertisers are considering TV advertising as one of the most effective advertising media. There are other companies who does not consider Digital and TV advertising as an “either or” but an “and”. One example of this is the P&G. They have used both advertising media to promote more of their products because they believe that the two media are causing them an increase of sales.
So, the question was still left unanswered. Is TV advertising spending going down or not? If we are talking about its percentage of the total media, then yes it is going down against digital advertising. However when we are talking about the amount it is spending, according to the graph above then it is not entirely losing its revenue.
Still the fact that most traditional methods of advertising is falling behind puts on pressure to entrepreneurs to really deal on optimized digital methods. Though there are advantages in going digital but there are also disadvantages to it. If a businessman is going to choose what advertising media to use, he or she must know what his or her target market is and think very well what is the most effective out of those advertising media.