U.S. Ad Rev Forecast To Hit $247 Billion By 2018

TV/video online advertising spending will more than double in the next four years -- contributing to modestly rising overall U.S. advertising growth.

Overall U.S. advertising revenue is expected to climb to $247 billion in four years from $206 billion in 2013 -- a 3.7% annual compounded growth rate, according to the latest entertainment study from PwC.

Television advertising will continue to be the largest segment -- looking to grow at a 4.3% annual rate over four years, currently at $77.7 billion. Taking out the online advertising around broadcasters' TV content, TV ad spending will climb 4.8% this year to $69 billion.

Internet advertising will climb 9% over four years on a compounded annual rate, currently at a total of $65.9 billion.
U.S. online TV advertising will double to $5.9 billion in 2018 -- up from $2.8 billion in 2013. The study also says that overall video Internet advertising will increase to $6.77 billion in 2018.

The report says total U.S. electronic home video revenue -- including pay TV subscriptions -- will more than double to $17.03 billion in 2018 from $7.34 billion in 2013, driven primarily by subscription video on demand.  

The sub-segment electronic home video over-the-top/SVOD/streaming revenues, one of the fastest-growing consumer categories, will get to $10.1 billion in 2018, up from $3.3 billion in 2013.  

Traditional U.S. theatrical box-office revenue will continue to climb -- although much more slowly than newer digital platforms, hitting $12.5 billion in four years from $10.8 billion in 2013.

Music advertising will climb by 2.8% and filmed entertainment advertising by 2.4% during the period. Radio advertising will rise 1.2%; business-to-business, 0.9%; and magazine publishing. Newspaper advertising will decline 5.8%



1 comment about "U.S. Ad Rev Forecast To Hit $247 Billion By 2018".
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  1. Howie Goldfarb from Blue Star Strategic Marketing, June 4, 2014 at 1:47 p.m.

    What a bonanza for the industry and since 50% of ad spend is wasted bad for Brand Shareholders.

    But this is a bit misleading because it is Gross not Real numbers. If inflation is 2% you have to subtract that for the real growth rate.

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