According to a new report from Forrester Research (posted by Adweek), television advertising is going to face an even larger rival in just five years’ time – digital advertising.
The research company indicated that interactive spending would reach a 12 percent compound annual growth rate and surpass a whopping $103 billion in just five years’ time. By that rate, it’ll surpass TV advertising and become the leader on the general advertising front. In addition, mobile advertising will account for 66 percent of that growth across various categories in the interactive field.
That’s not to say television will be a slouch, as it will continue to grow, although at a much slower rate than digital. Forrester believes it will reach $85.8 billion during the same five-year time frame.
However, Magna Global also backed up the statement that digital’s growth would explode, accounting more dollar spent on digital accounts than television in just three years time, ending 2017. eMarketer also chimed in, but stated that the overtaking point would be a year later, 2018.
Forrester broke down just where certain advertising spending would go:
-Social media will see an 18 percent compound annual growth rate (CAGR) and hit $17 billion.
-Display advertising will get a 13 percent CAGR and total $38 billion.
-Search marketing will achieve a 10 percent CAGR while jumping to $4 billion.
-E-mail will garner an 8 percent CAGR to $3 billion.
Forrester was also quick to point out that the average number of dedicated digital marketing staffers across U.S. companies, at the current time, is 18, but it expects to see that number pick up significantly over the next few years. However, it didn’t quite report where it sees general advertising hiring numbers going, despite the slow but steady increase.
