For the coming 2015-2016 TV season, digital advertising revenues to traditional media companies will climb 21% to $1.39 billion for its related broadcast programming and 18% more to $1.99 billion when it comes to cable assets, according to MoffettNathanson Research.
Virtually all digital video advertising come from TV networks’ own Web sites and apps, as well as Hulu, where premium pre-roll and mid-roll advertising is sold.
Overall, TV networks’ traditional national TV advertising and their digital TV advertising will witness a combined slight 0.5% decline this TV season versus a year ago, to $37.1 billion. In five years that number will be $35.7 billion, down 0.8% over that time span.
Premium digital video advertising via the TV networks now represents 9% of all national linear and digital broadcast TV advertising. Traditional national TV advertising is estimated to get to $13.8 billion this season.
Digital video advertising associated with traditional cable TV networks will be 9% of all national linear and digital cable TV advertising. Traditional cable TV advertising is estimated to get to $19.9 billion.
MoffettNathanson expects lower traditional national TV advertising advertising over the next five years -- $11.96 billion for broadcast and $17.86 billion for cable in 2019-2020. In that year, TV network’s digital advertising share will be 21% ($2.54 billion) of the total national TV broadcast advertising pie; 19% for cable ($3.38 billion).