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Changes in Ad Spending to Alter Television Landscape

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Way back in 2012, headlines were made when for the first time, digital ad spending surpassed print forever. Now, not more than a year later, Financial Times is reporting that Televisions reign on ad spending is forecasted to end. Group M, a WPP agency, is predicting that for the first time in more than three decades, television spending will decrease next year. Television accounted for 40.2 per cent of global ad spending this year but by 2016 it is estimated that Television spending will have fallen to 39.3 per cent. Digital and mobile spending predictably has been increasing steadily year over year, but up until now it has been largely just siphoning money out of print, while television has continued to grow.
The question is how the scales tipping will affect the industry on the whole? Will television remain as its own spending category or will digital and television merge as a medium? It all depends on how advertisers react to changes in consumer behavior and advancements in technology which is making it easier to deliver high bandwidth content to more devices and platforms. It is difficult to imagine that a whole new ad model won’t be necessary, especially if à la carte programming options are realized for the consumer. Advertising isn’t what it used to be, the audiences are more fragmented than ever before, but the opportunities to reach them are growing, if you know where to find them.

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