Driven by digital, advertising spend in the US is predicted to grow 3.2% in 2015 to $186.6 billion.
According to the latest advertising forecast by Strategy Analytics, digital will be the fastest growing ad format (up 13.0% year-on-year) followed by outdoor (up 4.8%) and cinema advertising (3.4%). Radio (up 1.8%) will also grow faster than TV (1.7%) whilst print will be the only ad format to see a year-on-year decline in revenue (down 7.9%).
Outdoor, cinema and radio are the only formats to grow faster in 2015 than in 2014. Despite this, traditional media revenues, overall, will be 0.2% lower in 2015 than 2014.
“Digital ad growth will be driven mostly by social media (31% growth), video (29%) and mobile (20%), although search will still command nearly 45% of digital ad revenues in 2015,” explains Strategy Analytics’ Michael Goodman, co-author of the report.
“Despite digital’s best efforts, the drop in traditional ad revenues means we’ll see fairly modest growth in overall U.S. ad revenues in 2015 and will have to wait for more significant growth in 2016, courtesy of the U.S. presidential elections and summer Olympics.”
TV will remain the biggest ad format in 2015, accounting for 42.2% ($78.8bn) of U.S. ad revenues, followed by digital, 28.3% ($52.8bn), and print at 14.9% ($27.9bn). Radio ($17.6bn), outdoor ($8.7bn) and cinema ($0.8bn) will account for the remaining 14.6%.
Compared to 2014, TV’s share will be down -0.6%, digital up 2.5% whilst print’s share will decline 1.8%. Share for the other formats will remain relatively unchanged.
A good place to keep track of these trends is the Next Generation Advertising Day at the OTTtv World Summit (16-19 November 2015 Millennium Gloucester Hotel, London, UK). Last year this was attended by the likes of Buzzfeed, Unruly and Sky Adsmart.