Digital Ad Spending Will Hit $41.8 Billion, Surpass Broadcast TV In 2015.
FTI Consulting is predicting an upswing in digital ad spending at the same time dollars spent on traditional broadcast television slow down. The business advisory firm wrote in its annual study U.S. Media Industry Forecast that media ad spending in the digital realm will hit $41.8 billion in 2015, finally surpassing the spending in broadcast television, which includes online TV services.
FTI’s study compared the ad spending between core internet advertising (which didn’t include advertising revenues from traditional media like magazines), cable TV with online access, and broadcast television. FTI found internet spending will rise 11.4% this year to reach the $41.8 billion mark, while broadcast TV will only gain 0.9% to hit $38.9 billion. Cable will gain a 6.2% raise this year to reach $33.4 billion.
And digital will only continue to grow, according to FTI. The firm believes digital will be the largest ad class by 2016, and will claim 30% of the market by 2020 and 35% by 2040. This means that by 2018, digital ad spending will reach $55.6 billion. Broadcast, on the other hand, is only expected to rise bit by bit to hit $45.5 billion, a difference of $10.1 billion in favor of digital ad spending.