TV to lead growing US ad market
Joseph O'Halloran | 28-04-2014
US media owners' advertising revenues are set grow by 6.0% to $168 billion over 2014 according to research from Magna Global.
US advertising as a whole is likely to benefit greatly in 2014 by key events such as the recently held Sochi Olympics as well as the US Mid-Term Elections and the football World Cup this summer. Across all core media categories (TV, radio, digital media, print, out-of-home), media owners generated an estimated $158.5 billion in ad sales in 2013.
Yet the survey reveals that digital media and TV will be responsible for the vast majority of that growth and that the former source of advertising is set to outstrip all TV revenues by 2018.
Television will benefit the most from the aforementioned non-recurring events of 2014, with advertising revenue growth of 8.3%, following stagnation in 2013 when TV revenues inched upwards by 0.6%. That said, the analyst described this as a decent performance for an odd-numbered year without major political spending or Olympics. In all, TV contributed revenues of $41.2 billion. Magna also believes that Hispanic broadcasters, notably Univision and ESPN, will cash in on the World Cup thanks to the huge appetite for football among their respective viewers.
For its part, digital media showed advertising revenues growing by 17% in 2013 to $43 billion. Within digital, mobile-based ad sales grew 110%, compared with 8% for desktop-based online advertising to reach 17% of total digital media revenues. Social media advertising grew 53% to $3.6 billion.
Digital media boasted a 27% market share in 2013, bigger than US national TV. However, digital was still significantly smaller than television as a whole, which had a 40% market share.