Posted by George Silva
FTI Consulting has forecast that core online advertising will surpass broadcast television’s long-held dominance of media ad spending in 2015 and will become the single largest ad class by next year.
According to its annual study, U.S. Media Industry Forecast, the firm’s Media & Entertainment experts believe core online advertising will climb from $37.5 billion in 2014 to $41.8 billion this year and $55.6 billion by 2018.
The estimated annual growth rate of 10.3 percent for digital ad spending forecast by the Media & Entertainment team stands in sharp contrast to a projected 4.2 percent average annual increase for the broadcast sector over the same five-year period. Broadcast ad revenues are expected to rise minimally in 2015 to $38.9 billion and to $45.5 billion by 2018.