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June 1, 2016

Ad Spending by Media

Most businessmen are practical thinkers. They always think what would be the best decision that could cost them a little. They would always to anything just to increase their sales and lessen their expenses. One of the best way in promoting their company, business, products and services is through advertising. Advertising involves a lot of things. From the traditional ways such as television and radio advertisements to digital advertisements that includes email and social media advertisements that are very much common these days.

For the next 3 years, people around the world will tend to spend on media advertisements at a compound annual rate of 5.1 percent. It has been predicted that from $1.6 trillion in 2014 it will escalate by $0.5 trillion in 2019 which is a total of $2.1 trillion.

Media Advertisements include the following: digital advertising, broadband, TV advertising, In-home video entertainment, audio entertainment, cinema advertising, out-of home, consumer magazine publishing, newspaper publishing, consumer books, educational publishing and video games. These media are both traditional and digital ways in marketing campaign.

The table below shows the global media spending forecast from the year 2014 to year 2019.

media1 1 300x298 - Ad Spending by Media

Every medium in the media advertisement have been increasing. Though there are two who have not been doing well. The consumer magazine publishing and newspaper publishing are not increasing. But in over all, the total media spend throughout the years are expected to increase by 5.1%.

In the US country, it has been reported that media advertising will climb by 5.1% this year 2016.

media2 300x263 - Ad Spending by Media

The pie graph shows the US total media ad spending by media in the year 2015 and 2020. From the graph above, it can be seen that by the year 2020, digital advertisement will extremely increase by almost 12% and the television advertisement as well as the print advertisement will be decreasing by almost 5% and 2% respectively. The other medium of media advertisement are bound to decrease as well. That is because technology has been greatly influential these days. Though this result is from the US only, still the media advertisement spending globally is increasing.

The most used advertisement will be digital advertisement. Businessmen should have think about going digital now because many consumers are using the internet and some other technological stuffs in knowing the information of a certain company, product or services. Going digital is very much popular. Innovating other ways to achieve the most effective digital advertisement is a great idea. People love innovations and new methods. They are bound to be persuaded by words and techniques a company has used just to allure people.

From the results above, it can be concluded that for the upcoming years, the total amount of money to be spend in media advertisement will incline and this inclination have so much to do with digital advertising. After knowing this results, many entrepreneurs must have planning on other ways to compete with other competitors in ways of advertising products.

Sources:

https://www.cmocouncil.org/facts-stats-categories.php?view=all&category=marketing-spend

http://www.statista.com/statistics/272316/advertising-spending-share-in-the-us-by-media/

http://www.emarketer.com/Article/US-Spending-on-Paid-Media-Expected-Climb-51-2016/1013739

http://www.mckinsey.com/industries/media-and-entertainment/our-insights/the-state-of-global-media-spending

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