‘This Year, Next Year’ Forecast Predicts Sizable Deceleration in TV Ad Growth

‘This Year, Next Year’ Forecast Predicts Sizable Deceleration in TV Ad Growth

NEW YORK, NY — Media projections for the annual This Year, Next Year reports have shown that TV Ad growth has been steady in the US and the UK.

However, by the same reports, it would seem that ad revenue growth across the world will have decelerated by the end of 2019, dropping to 4.8% growth from 5.7% in 2018.

This is expected to continue on until 2020, slowing down to 3.8% growth by the end of the year.

According to GroupM, conductors of the This Year, Next Year report, this deceleration is primarily caused by the appearance of digital-first services. Digital advertising, according to Group M, continues to alter the behaviour of the entertainment consumer base, including the way that they take in the information given by advertising.

Digital advertising was reported to constitute 52% of global advertising, as well as 60% of all advertising in major markets such as the UK and China.

The long-term implications of this slowing down of growth remain to be seen for the TV industry. Despite worldwide TV ad revenue being projected to incur a 3.6% decline by the end orf 2019, the overall growth rate by then is projected to be 0.1%.

This growth rate has been predicted to increase substantially, reaching 1.8% sometime in 2020.

To explain this, GroupM points to countries where TV ad growth remains consistent, even as digital advertising continues to grow in those same countries. According to them, digital advertising only constitutes 15% of TV-related activity in those countries, with 30% annual growth.

To conclude, GroupM stated that traditional TV had incurred only slight losses in terms of growth and audience base. They did add, however, that this has masked the expansion of streaming services.

Further, they said that the primary concern for marketers who incorporate TV as a chief revenue source is the appearance of Streaming Video On Demand (SVOD) services, particularly the bigger names based in the US such as Disney+ and Apple TV.

Cord-cutting and cord-shaving are also accelerating faster than ever, continuing to put pressure on pay-TV especially in mature markets such as the US, where their availability and accessibility presents a clear advantage against traditional TV services.

Emma Cassidy
the authorEmma Cassidy
Emma is a Sports writer and loves talking and learning about new Sports. She studied journalism at The City College of New York. She loves watching American Sports as well as watching her children play. When she gets some free time she likes to read books by "Jacqueline Wilson".

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