Report: Digital Ad Spend Will Grow, But Overall Market Will Shrink


Blast those cheapo web banners! Digital and mobile media will take a whopping 78 percent of global entertainment and media ad spend by 2013, as money shifts away from traditional media, according to new PricewaterhouseCoopers research – but online still won’t make up for the shrinkage of analogue.

Although UK digital ad spend is forecast to grow 11.5 percent annually between 2011 and 2013, our ad market overall will contract by $3 billion (£1.77 billion) from its 2007 peak.

PwC partner David Lancefield, from the Global Entertainment & Media Outlook report: “The combination of a global recession and the structural shift towards digital platforms has accelerated the decline of some traditional media. The considerable growth in digital usage and revenues will not plug the gap left behind over the next few years.

Right now, even digital is in decline – UK 2009/10 online ad spend is projected to dip 3.2 percent.

PwC also highlights just how many small businesses have fallen prey to the recession: the downturn has claimed some high-profile victims but PwC reports that 910 smaller advertising and media businesses have gone bust in the past two years, 525 in the last 12 months…

Advertising: 211 in 12 months to June 31 (50 percent up annually). 352 in the last 24 months.
Broadcast: 81 in last 12 months (40 percent rise).
Publishing: 260 in last two years.
Music: 18 in last two years

Why so many? For Lancefield, the reasons are simple: not enough ad money to go around. “The contraction in advertising budgets is hurting all companies but it is currently picking off the small independents that do not have deep pockets or the ability to refinance,” he says. Plus he has some sound advice: “Winning in the upturn isn

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