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Online advertising to overtake television by 2019: PwC

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MUMBAI: The latest edition of the ‘Global Entertainment and Media Outlook’ 2015-2019 compiled by PwC clearly indicates digital advertising as the way forward. According to the report, revenue for digital advertising is expected to grow at a fast a rate of 12.2 per cent Compound Annual Growth Rate (CAGR) against 1.2 per cent for non-digital. Though, non-digital advertising will still command 60 per cent of the total global ad spend in 2019.

What’s worth noting is that the global revenue on advertisement will see a rise at a CAGR of 4.7 per cent to 2019, with Indonesia emerging as the fastest growing advertising market at CAGR of 12.9 per cent.

By 2019, digital advertising as a whole - including digital out-of-home - will account for 38.7 per cent of total global advertising revenue. The internet’s triumph over television as a medium for advertising will be facilitated by the fast growing market for mobile and internet video advertising.

Mobile internet advertising will surge at a 23.1 per cent CAGR to 2019, overtaking display internet advertising globally in 2018 and replacing paid search in the US by 2016 as the leading internet advertising category. Global video advertising spend which is also expected to rise at a CAGR of 19.5 per cent will be catalyzed by a near-doubling of global smartphone connections to 3.85billion in the said year. 

 

This rapid rise in mobile and internet video advertising calls for media companies to offer both native and programmatory inventory of their advertising portfolios, taking into consideration the timescales and skills set of these two varied mediums which need different management.

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