Global spending in the entertainment and media (E&M) sector is set for healthy annual growth between 2012 and 2016 and much of the credit will be due to online and TV advertising expenditure, accounting services major PwC predicts in its Global Entertainment & Media Outlook 2012-2016.
PwC forecasts that USD2.1tn will be poured into E&M in 2016. Considering that the amount came in at USD1.6tn in 2011, the new figure translates into growth of 5.7% on an annual basis. PwC notes in its report that several shifts are underway in the industry, which is adapting to what the firm refers to as the “new normal”. This adaptation involves expenditure shifting from print to digital media, from fixed-line to mobile and from developed markets to high-growth emerging ones.
PwC partner Phil Stokes said that E&M companies had made it to the “end of the digital beginning”, meaning that they have committed to digital and are currently channelling their energies into implementing product, distribution and organisational changes that will ensure their sustainable and profitable growth in the future.
It is therefore not surprising that PwC expects the biggest adspend increase to occur in the online advertising segment. TV ad expenditure will also remain on a solid growth trajectory, with both channels outstripping overall ad spending growth.
According to the forecast, total adspend will reach USD661bn by 2016, posting annual growth of 6.4%. Online expenditure is predicted to power ahead with an annual expansion of 15.9%, while TV adspend is expected to deliver growth of 6.6%.