While TV Ads Dip, Internet Ad Rates Soar

Higher-than-expected Internet advertising business in 2017 will more than compensate for TV ad declines — including all platforms, broadcast, cable, and TV stations. Gains will help U.S. advertising improve modestly this year.

MoffettNathanson Research now projects that overall U.S. advertising in 2017 will rise 3.4%, hitting $197.3 billion. Previously, it had estimated a 2.7% gain.

New projections are that total Internet advertising — search, video, display, mobile and social — will grow 18.5% to $85.9 billion. An earlier effort forecast a 16.3% hike. Total TV advertising will be down 4.1% to $76.4 billion.

Among the big TV segment losers, TV stations will be down 8.2% to $20.8 billion. The dive is largely expected, coming against high dollar gains in 2016 from political and Olympic advertising. Broadcast networks look to drop 3.7% in 2017 to $15.7 billion, while local cable is down 6.1% to $5.1 billion.

Ad-supported cable networks, the best-performing TV platforms, will slip just 1.5% to $30.3 billion.

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Other media is also seeing declines. Radio will be down 1.5% to $17.5 billion; newspapers are off 8% to $15.2 billion; magazines slipping 1% to $12.4 billion. Outdoor will have a slight rise: 1% to $7.6 billion.

MoffettNathanson estimates that “traditional” media — TV, radio, magazines, outdoor, and print — will drop 5.9% to $111.4 billion in 2017. This will ease somewhat next year; projections call for a 1.5% decline in 2018.

1 comment about "While TV Ads Dip, Internet Ad Rates Soar".
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  1. Ed Papazian from Media Dynamics Inc, June 8, 2017 at 4:13 p.m.

    Another apples vs oranges comparison that creates the illusion that major traditional advertisers are switching billions of ad dollars into digital. The only  comparison that is acceptable would show how the amounts spent for the various types of "advertising"---pure branding, direct rsponse, search, classifieds, etc.---are trending for each medium. Were such data available, the results would be substantially different and a far more relevant indicator of how the real trends are developing.

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