Digital media could be the No. 1 ad category in the US by 2017 with $72 billion in spend, outpacing TV by about $1.5 billion, according to a MAGNA Global quarterly Advertising Forecast released Tuesday.
The report attributed the shift partly to “the advent of programmatic buying in digital media and the stabilization of cost for premium video inventory,” converting categories of traditional TV spenders (namely consumer packaged goods companies) to digital channels. Marketers are exploring integrations of consumer and sales data to enhance digital media targeting.
Although television revenue was up 4% in the first half of the year, MAGNA lowered its full-year forecast from 8.3% to 6.1% in total growth for that category. Other traditional media categories fared worse in terms of revenue growth: print was down 9.5% year over year in the second quarter, radio was down 4.7% while out of home revenues slowed from a 4.3% growth rate to .9%.
Overall, US advertising revenue is expected to grow by 5.1% to $167 billion this year, a slight decrease from MAGNA’s previous growth estimate of 6%. This was attributed to non-recurrent ad spend generated from Political and Olympic (P&O) campaigns and “softer-than-expected” market conditions related to the economy in Q2.