Television advertising is set to take a back seat to the foray of the internet, according to a new survey.
A report by MediaReachOMD in 2012 had shown that television advertising grew by 7.2 per cent, but advertising in outdoor decreased by 43.9 per cent and press by 41.7 per cent.
Of the N91.846 billion advertising spent two years ago, television had N49.399 million, radio (N15.782 million), outdoor (N17.692 million) and press (N8.974 million).
Online was not mentioned in that report.
But going by a new publication by PwC, focusing on 2014 to 2018, the industry is approaching a tipping point.
In 2009, advertising revenue from TV was almost double that of internet advertising, said the report. However in 2018, internet advertising will be poised to overtake TV advertising.
Total entertainment and media spending on digital services globally is forecast to grow at a 12.2 per cent compound annual growth rate (CAGR) between 2013 and 2018, and account for 65 per cent of global entertainment and media spending growth, excluding spending on internet access.
In 2018, 33 per cent of total advertising revenue is projected to be digital, compared to 17 per cent of consumer revenue.
However, profiting from the migration by increasing revenue from digital consumers will not just be about the application of digital technology.
It will be about applying a ‘digital mindset’ to build the right behaviours, advancing from a digital strategy to a business strategy fit for a digital age, according to PwC’s global entertainment and media outlook 2014 to 2018.
PwC’s Global Leader (Entertainment and Media), Marcel Fenez, stressed that “the bedrock of a strategy fit for the digital age is the digital mindset: getting ever closer to the customer – across the entire organisation, and in everything it does.
“We now see that mindset embedded in many entertainment and media companies. But the industry needs to get even closer to the consumer and adopt more flexible business models.
“To do this, companies must exhibit three behaviours: forging trust with consumers; creating the confidence to move with speed and agility; and empowering innovation. This will be an important step in monetising the digital consumer.”
Nine high-growth markets are powering global entertainment and media revenue. China, Brazil, Russia, India, Mexico, South Africa, Turkey, Argentina and Indonesia.
Collectively, they are forecast to account for 21.7 per cent of global entertainment and media revenue in 2018, up from just 12.4 per cent in 2009. Also in 2018, China will be set to overtake Japan as the world’s second largest entertainment and media market, behind only the United States.
“What all these markets have in common is a growing middle class boosting spending in entertainment and media. But the similarities stop there. Realising the revenue potential of these markets demands a deep understanding of the local context.
“Given their intimate local market knowledge, domestic organisations are in prime position to realise the opportunity of the emerging middle class. The optimal approach for international players will most certainly be to collaborate with local partners,” Fenez enthused.
Mobile internet penetration is expected to reach 55 per cent in 2018, which will help drive digital advertising to increase its share of total advertising revenue to 33 per cent by 2018, up from 14 per cent in 2009.
With internet advertising growing at 10.7 per cent CAGR (compared to a total advertising CAGR of 4.4 per cent), the industry is approaching a significant slant: in 2018, internet advertising will be poised to surpass TV advertising.
In 2009, TV advertising was double that of internet; in 2018, internet advertising will trail TV advertising by just $20 billion.
Mobile internet advertising is forecast to grow at a CAGR of 21.5 per cent, said the report.
