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Ad Spending Predictions for 2015

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March 18, 2015 by Scott Howard

Last month, this bit of information crossed my desk from a Mediapost newsletter:

TV Gets Most Ad Spend; Digital Format Grows Fastest; Print Slips More

Now these are predictions based on surveys.  This is simply showing where the predictions to spending will go this year.

It is NOT a prediction of what form of advertising gets the best return on investment or bang for your buck.

The reason for my sharing it however is to enlighten you as to what the crowd is planning on doing.  This is NOT a recommendation for what you should do with your business.

With that disclaimer, let’s take a peek at the info:

According to the latest Advertising Forecast from Strategy Analytics, advertising spend in the U.S. is predicted to grow 3.2% in 2015 to $186.6 billion, driven by digital, the fastest growing ad format (up 13.0% year-on-year,) followed by outdoor and cinema advertising. Radio will also grow faster than TV, while print will be the only ad format to see a year-on-year decline in revenue.

Outdoor, cinema and radio are the only formats to grow faster in 2015 than in 2014. Despite this, traditional media revenues, overall, will be 0.2% lower in 2015 than 2014.

Change in US Ad Spend by Media in 2015
Medium

Percent Change

Digital

13.0%

Outdoor

4.8

Cinema

3.4

Radio

1.8

TV

1.7

Print

-7.9

Source: Strategy Analytics Ad Forecast, February 2015

 

Strategy Analytics’ Michael Goodman, co-author of the report, notes that “Digital ad growth will be driven mostly by social media (31% growth, though nearly $30 billion behind TV ad spending,) then video (29%) and mobile (20%), although search will still command nearly 45% of digital ad revenues in 2015.”

 TV will remain the biggest ad format in 2015, accounting for 42.2% ($78.8bn) of U.S. ad revenues, followed by digital, and print. Radio, outdoor and cinema will account for the remaining. Compared to 2014, TV’s share will be down -0.6%, digital up 2.5% while print’s share will decline 1.8%. Share for the other formats will remain relatively unchanged.

Share of US Ad Spend By Media (2015, Billion $)
 

Medium

Ad Spend (B$)

TV

$78.8

42%

Digital

52.8

28

Print

27.9

15

Radio

17.6

10

Outdoor

8.7

5

Cinema

0.8

Source: Strategy Analytics Ad Forecast, February 2015

Leika Kawasaki, co-author of the report says, “By 2018, TV’s share of ad revenue will fall to 40% while digital’s will have grown to 35%. However, TV’s declining share is less about ad dollars flowing out of TV and more about dollars flowing into digital from print and radio. TV networks such as ABC, NBC, MTV and the like will see little, if any, real decline in revenues, just a shift in the source from linear TV ads to online video. Print will be the major casualty, falling to $20.3bn by the end of 2018 – less than a third of its 2007 level – accounting for just 10% market share (of ad spend).”

For additional information from Strategy Analytics, please visit here.

I work in two of these medias: Radio and Digital.  It’s a combination of a traditional media, radio, that can produce a tremendous return on investment, with a new and evolving media, digital, that is beginning to prove itself worthy of additional investment if using the appropriate  methods and tools.

My job is to help you pick the methods that will help you solve your business key marketing challenges.   Your job is to do what you are best at, running your business.  Contact me and I’ll help you do what makes sense for you.

Scott Howard aka ScLoHo has 25+ years of experience in marketing , advertising, media and works directly in the radio and digital world from Fort Wayne, Indiana.  Contact him at Scott@ScLoHo.net or 260.255.4357.

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