“New generations increasingly rely on online VOD (sometimes ad-funded or sometimes premium, ad-free) for video entertainment, while advertisers are keen to embrace new digital formats like video and social,” said Vincent Letang, EVP and director of global forecasting for MAGNA.
GroupM, in its biannual global ad expenditure forecast, found that while TV traditionally comprised 44% of global ad investments, that reached its peak in 2012 and has shed about a point per year.
A shift in viewer attention and changing advertiser investments may therefore contribute to a decrease in both supply and demand for linear TV impressions.
While television is “the preeminent brand awareness channel,” said Zenith’s report, online video will grab a greater share of global display ad revenues as programmatic media continues to grow.
Programmatic advertising will account for 53% of display ad spend this year, but will increase to 60% of digital display by 2016. The growth in programmatic ad spend is fueled by automated technology and the rise of hybrid categories like “audiovisual advertising.”
Audiovisual advertising, according to Zenith, combines the reach of TV with the personalization of digital/mobile video ad targets; the agency estimates the audiovisual category will grow to account for 48.9% of display ad spend in 2018, up from about 44.1% in 2010.