Whoever said digital is dead?
Internet advertising is expected to surpass broadcast television advertising for the first time in American history by the end of the decade, according to an in-depth outlook report by PricewaterhouseCoopers (PwC).
The U.S. continues to have the highest revenue of internet advertising, with $59.6 billion for 2015, and that is expected to increase to $93.5 billion by 2020 (9.4% increase).
Mobile advertising made up 34.7% of total internet advertising revenue at $20.7 billion in 2015 and will rise by more than double to 49.4% by 2020.
“Consumers are engaging with media increasingly on their mobile phones, and even at work. These mobile behaviors are challenging the traditional value of attention and the ability to monetize advertising dollars,” Deborah Bothun, PwC’s Global and U.S. Entertainment and Media Leader, said in a statement. “There’s no one perfect metric to inform advertisers of the value they get when you consider the shifting consumer behaviors.”
Bothun added that consumer experience and the increased adoption of ad-blocking technology may hinder the market for advertising.
Yet, access to internet revenue is expected to rise to $181.7 billion, with internet being more accessible to users around the world. An emphasis on digital media that focuses on video is expected to rise to 85.5% of total data traffic by 2020.
The trend in newspaper publishing is expected to be in continued decline at a -2.9% rate in the years to 2020. Consumers no longer find newspapers to be the place where real-time content is, in comparison to digital. Even among the digital space, there is an increase premium placed on “live experience,” which includes the rise of e-sports, social media and online live video.