TV Ad Market Expected to Hit $68B, Digital Video $6B in 2014
June 12, 2014
by Wayne Friedman
Although the growth rate of digital video advertising has risen faster than the traditional TV ad market, TV will continue to outpace digital video in terms of growth of actual advertising revenue.
This year, the TV ad market -- broadcast and cable networks, syndication, and local spot -- will climb to $68.54 billion, adding on $2.19 billion, or 3.3%, from last year’s $66.35 billion, according to new research from eMarketer.
At the same time, digital video will rise to $5.96 billion -- up from $1.76 billion, or 41.9%, from its $4.20 billion total in 2013.
The study says TV will continue to outpace digital video in terms of actual advertising dollars in the coming years -- $2.06 billion to digital’s $1.81 billion in 2015; $3.18 billion to $1.68 billion in 2016; $2.21 billion to $1.67 billion in 2017; and $2.66 billion to $1.59 billion in 2018.
"The digital video audience is spread more thinly than a mass television audience, and that segmentation makes digital video ad buys more complex and less reliable than TV advertising," states David Hallerman, principal analyst, eMarketer.
He adds: "Time spent with digital video is growing significantly, and it's taking away some TV time, but given the diversity of placements and platforms, digital video viewers are more difficult for advertisers to target."
Digital video will continue to grow at a faster rate than TV. But that growth rate will ebb in the coming years -- a 30.4% gain in 2015; 21.7% in 2016; 17.6% in 2017; and 14.3% in 2018.
Traditional TV growth will continue at a steady pace -- up 3.0% in 2015; 4.5% in 2016; 3.0% in 2017; and 3.5% in 2018.
By 2018, traditional TV advertising revenue will get to $78.64 billion with digital video to $12.71 billion.
"TV Ad Market Expected to Hit $68B, Digital Video $6B in 2014." MediaPost, 2014
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