TV’s reign over ad spending to end after three decades

Television’s hold on advertising budgets is beginning to falter, with forecasts indicating its share of global advertising is to peak after three decades of growth. Television is expected to capture 40.2 percent of the $532 billion global ad market in 2013 before falling to 39.3 per cent of the total market in 2016, according to Publicis’ ZenithOptimedia.

WPP’s GroupM is also predicting that TV’s share of the global advertising market will decrease slightly in the coming year. The transition is the result of digital media chipping away at television’s dominance amid broader upheaval in the industry. ZenithOptimedia forecasts that the internet will boost its share of the ad market from 20.6 percent in 2013 to 26.6 percent in 2016. Within that category, mobile advertising will grow by an average of 50 percent a year between 2013 and 2016, contributing 36 percent of extra ad spending. TV will account for 34 percent of new ad spending, with newspapers and magazines declining by an average of 1 percent and 2 percent a year.