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How Will Businesses Spend Their Marketing Dollars in the Coming Years?

By | 06.19.15

How Will Businesses Spend Their Marketing Dollars in the Coming Years?

Pricewaterhouse Coopers (PwC) recently released a report that projects how marketers will spend on online and offline advertising sources through 2019. As expected, an increasing number of consumers online will force advertising dollars to move to online channels if businesses don’t want to miss out on the potential sales.

Perhaps the biggest revelation from the report is that by 2019 spending on online advertising will exceed spending on TV advertising. Other projections for online advertising include:

  • Mobile advertising spending is expected to rise to 46% in 2019 from its current spending projection of 30% in 2015.
  • Paid search spending is expected to grow from an anticipated $19.7 billion this year to $22.1 billion by 2019.
  • Display ads will have slow growth during this period, only increasing by $1 billion.

Researchers are careful to note that the advertising dollars lost to TV haven’t been as damaging as one might expect. This may be due to the fact that advertisers create complementary online campaigns to go along with TV advertisements. Changes projected for TV advertising include:

  • TV advertising spending is expected to grow by nearly $10 billion over the next four years.
  • Only 8% of TV advertising revenues will come from online TV advertising.
  • Broadcast networks can expect to see a higher advertising growth rate than cable TV networks.

Radio advertising spending in the US isn’t expected to change much, growing by only about $700 million by 2019. Similarly, consumer magazine advertising is also projected to remain fairly flat, with only a projected $200 million in advertising growth during the period. Trade magazines can expect even lower spending growth.

Of all the markets addressed in the PwC report, newspaper advertising is the only one expected to decline and is projected to lose more than $4 billion in advertising revenues by 2019. With classified, retail and national advertising segments all expected to drop by at least 8% each year between now and 2019, print newspapers will need to find additional sources of revenue quickly.

Unlike other traditional advertising markets, out-of-home (OOH) advertising has a promising outlook and is projected to increase by nearly $2 billion by 2019.

While still a small player in the advertising world, cinema advertisement spending is expected to grow by just shy of $60 million by 2019.

Although online advertising channels will continue to grow and be a factor in reaching customers through 2019, it’s clear that many traditional and OOH advertising channels will still be useful for getting your company out in front of your potential customer base.

Source:

MarketingCharts. US Online and Traditional Media Advertising Outlook, 2015-2019. June, 16, 2015.

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