Every year, Price Waterhouse releases their Entertainment & Media Outlook report with advertising market predictions through 2021.
Since last year’s report, online advertising has overtaken television by about $15 billion. By 2021, the online advertising market is estimated to be 50% larger than TV and has a compound annual growth rate (CAGR) of 9.9%.
Mobile has the largest share of online ad spend and accounts for 71% of all internet consumption, as reported by Digiday. Fueled by social video, “mobile advertising is projected to grow by an annual average of 18.7% from 2016 through 2021”.
Television advertising spend is growing slowly and is expected to reach 38.8% share of the market in 2021. Its low CAGR of 1.3% is due in part to declining viewership, a trend driven by younger demographics. Marketing Charts reports that this decline is not only due to cord-cutting but also the fact that 18-24 year olds are watching less traditional television.
With both the magazine and radio markets remaining flat, the only market expected to see a decline in revenues by 2021 is newspaper advertising. Despite loyal readership, the newspaper market revenues are expected to drop by $4.6 billion between 2017 and 2021.