Forecast 2017 - 2021: US Traditional and Online Advertising Growth

Following one report conducted by Entertainment & Media Outlook 2017 - 2021 lately, it shows the overall outlook for both online and offline advertising sectors in the US through 2021. Let’s take a closer look at a few of the highlights for US media markets during this period. This brings out an in-depth update for our forecast data on offline promotion and social media advertising in the country.


Inside the report, you’ll understand the major changes in the advertising spending for the coming five years along with the true dynamics that drive its overall growth. So what will the landscape look like in 2021? Let’s find out!

Online Advertising 

With a huge explosion of the Internet nowadays, no wonder why online advertising market has easily surpassed the traditional display advertising in size. According to PwC, this market overtook TV one year ago by $15 billion, meanwhile, it had measured that TV appeared bigger than the online promotion just last year.

Taking up 9.9% of the annual growth rate from 2016 - 2021, US online advertising will reach $116 billion in the market, which makes it 50% bigger than the traditional solution at that point. Moreover, as expected, mobile share of the ad on the Internet is said to grow through the forecast period, making PwC forecast change dramatically.

Returning to the last year, it was claimed that mobile promotion would grow and reach 40% of the share of promotion on the Internet in 2020. Out of mobile advertising methods, display feels a bit smaller than search through the forecast duration.

For mobile video, it’s the fastest-growing sector, with a compound annual growth rate of 31.2%, which brings it at the same level with other mobile advertising formats before the arrival of 2021.   

TV advertising 

Television advertising solution still grows at a rate of 1.3%
This is planned out to grow gradually from $71 billion in 2017 to $75 billion 4 years later. At this point, it can overtake 38.8% share of the market. Nowadays, TV develops at a rate of 1.3%, which is supposed to be much lower than last year (3.2%). This is triggered due to the decline in TV viewing, and it’s because the trend for viewing across a bunch of devices, our linear TV’s appearance is just declining.

However, online advertising is forecast to consist of a little portion of your whole TV advertisement revenues. In fact, just $5.7 billion out of $75.2 billion in the advertising turnover for 2021 is hoped to come from the online TV.  When the CAGR for online TV advertisement slows down: It’s around 7.4% this year, 8.9% last year while 14.4% one year prior.

At the same time, within the advertising sector, cable networks are predicted to view a higher advertising CAG (2.9%) than broadcast networks.

Newspaper advertising 

So newspaper advertising is one of other markets expected to view a decline in revenues, this year and 2021 (%16.8 billion dropped to $12.2 billion). Not similar to magazine advertising, newspaper market has not grown fast enough (just 2.2% from 2016 - 2021) to make up for other advertising losses (CAGR of 12.6%).

According to the forecast, it takes up 29.8% of newspaper advertising revenues this year; then digital ads rise to 44.6% share of the profits in 2021. Also, each of the 3 key segments of print ads is forecast to decrease, and classified segments own the worst point of view.

So different from magazine publishing, the advertising produces more profits for newspapers, though this isn’t the common case in the globe. But with paper ads on this decline, circulation revenue will be as big as that of advertising by 2021, and it keeps print-based at $10.9 billion as compared with $0.9 billion in digital ads.

OOH Advertising

OOH is a short of Out-of-home advertising solution, which bears the most powerful forecast of the classic media solutions, via its outlook is the outcome of the healthy projected development in digital out-of-home ads. Generally, OOH ad profits are predicted to develop from $9.2 billion one year ago to $11 billion in 2021, with a CAGR of 3.7% during 2016 - 2021. 

During the forecast period, digital is expected to grow at a compound annual rate of 8.1%, bringing it from 39.4% share of total OOH ad revenues this year to 46.5% share in 2021. Some common OOH media you have often seen are street furniture, transit posters, or static billboards.

Video game advertising 

Mario video game ads 
It’s the first year when we also covered video game ads in this overview, but how come? The overall video game ads market is around twice as big as the cinema ads market. And until this year, approximately $1.4 billion is spent promoting video games, with such growing to $1.9 billion in 2021. It’s only a little slice of the whole $28.5 billion game market at the end of the forecast process.

Cinema Advertising

So movie theater ads has always been an essential part of the whole media mix. They help to create a long-enough memory that your brand tends to tap into. And due to the moviegoers’ mood, such engaging preshow before the move begins will help to trigger their heightened emotional responses.

The least medium of all mentioned in this article - cinema advertising is forecast to rise from $881 million this year to $965 million 5 years later with its CAGR of 2.4%. Its ads profits will keep getting smaller by box office earnings, which are expected to increase at one 1.2% annual pace from 2016 through 2021. It’s projected that the whole spending would move to

Conclusion

The US advertising forecast displays the healthy projections for the overall ad market from 2017 - 2021 when the media ads spending is forecast to achieve $207 billion mark this year.

Amongst them, television has been considered the hugest medium in the US, but in 2017, it lost its market lead to the digital segment. Not just that, but both mobile, video game and social media advertising will also rise up and the online display ads has to suffer in part due to the brand safety, viewability and other issues.