PwC’s Entertainment & Media Outlook Report contains projections for advertising expenditures through 2022. The following are highlights for major media markets in the U.S.
Out-of-home (OOH) advertising has the strongest projection of traditional media, experiencing eight consecutive years of increases, due to the healthy expected growth in digital out-of-home.
Digital out-of-home (ex. billboard, DMV, elevator, gas station) is expected to grow at a +8% compound annual growth rate (CAGR)¹.
Online is expected to have a +7.7% CAGR through 2022.
Mobile is projected to grow +13%, with video the fastest-growing segment at +21.5%.
TV continues to grow slowly at a +1.3% CAGR, in part due to declining TV viewing.
Online TV is also growing slowly at +5.9%, below the forecasts of the past several years.
Consumer magazines outlook is bleak with a -2.2% CAGR; digital’s +4.4% is not enough to offset print’s -6.6%.
Trade magazines are a bit rosier at +0.6%; digital’s +9.3% will be just making up for print’s -8.4%.
Radio is expected to remain flat with a CAGR of +0.9%.
Online radio will be the fastest growing segment at +7.9%.
Newspapers are the hardest hit, expected to see a decline in revenues between now and 2022.
Digital advertising’s +2.2% CAGR is not growing quickly enough to offset print’s -10.4%.
Cinema is predicted to grow at a CAGR of +2.7%.
Cinema advertising revenues will continue to be dwarfed by box office revenues.
¹The compound annual growth rate (CAGR) is the proportional growth rate from year to year for a business, used to calculate growth over a time period.
Source: PwC’s Entertainment & Media Outlook, reported by Marketingcharts.com