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Zenith Sees TV Ad Spending Growing after Flat 2015 22 June 2015

 

Media agency ZenithOptimedia forecasts that advertising spending on TV will be basically flat over the next three years. Meanwhile spending on digital media, particularly video, is expected to climb.

In its second quarter forecast, ZenithOptimedia forecasts that TV spending will rise 2% to $68.1 billion in 2016, an Olympic year, after a small dip in 2015. The agency sees spending increasing negligibly in 2017.

TV dollars are expected to continue to shift from broadcast to cable. ZenithOptimedia sees broadcast network spending sliding from $15.7 billion in 2017 from $17.4 million in 2014 following a decline in ratings. “Networks are continuing to focus on recapturing audiences across other screens, fueling growth of their digital and mobile business. Among these opportunities is the advancement of dynamic ad insertion,” the agency says in its forecast. .

Spending on cable is seen rising to $24.2 billion in 2017 from $22.4 billion in 2014 as cable networks add more quality original programming to their lineups.

Syndicated TV is expected to hold relatively steady through 2017, while spot TV increases 1.5% in 2015, 3% in 2016 before staying flat in 2017.

Across all media in the U.S., ad spending is expected to rise 3.7% in 2015, 4% in 2016 and 3.7% to $197.2 billion in 2017. “Our largest increase in spend for 2015 are all from the digital category,” ZenithOptimedia says, noting a 32% increase in social media spending and 26% for online video on demand.

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