In 2017, digital gets a big boost, but… TV still dominates ad spend and is still growing.
TV ad spend in the United States continues to grow – despite what you may have heard about digital. Group M, the world’s largest advertising buyer, has projected an increase in ad spending on television of 4.1% for 2017. That’s an increase from what they projected a few months ago when they said ad spend would grow 3.4% in the US.
Digital, however, is still the growth king
In 2016, GroupM says digital got the overwhelming majority of the new money. 72 cents of every new dollar spent on advertising went to digital and next year, it will be even larger in 2017 at 77 cents.
“Twenty years on from the internet becoming a measured ad medium, digital remains the engine of advertising growth and disruptor-in-chief of the entire marketing economy… This multiplies options, opportunities and risk.” – Adam Smith, GroupM futures director
In the quest for incremental (new) advertising dollars, 2016 saw TV with 21 cents of each new dollars and GroupM projects 17 cents next year.
Still, TV dominates all ad spend
Still, TV gets 42% of the total ad dollars – the most of any medium. Digital now accounts for 31% of ad spend and GroupM projects 33% for 2017.
So… digital advertising is growing at an astronomical rate and continues to get the new dollars being spent. TV ad spend is still growing, but at a smaller rate. The growth is likely being fueled by spending cuts in other areas.
“Digital keeps surprising us. What’s surprising is the bigger the appetite for digital is, the bigger it gets.” – Adam Smith, GroupM futures director, in AdAge