PwC reveals media spend forecast
Canada is set to outpace the US over the next five years, according to the report.
PwC has released its media and entertainment spend forecast for the next five years and predicts Canada’s growth in the sector outpacing the US’s year over year.
According to the study, Canada will grow at an expected 6.1% compound annual interest rate, compared with the US, which will grow at 4.6%.
Gains in the Canadian sector are led with predicted double-digit growth in internet advertising (15%), increases in internet access payments (12%), TV subscriptions (7.4%), trade magazines (6.9%) and OOH advertising (6.4%). PwC predicts consumer and end-user spending will also grow in Canada by 5.2% compounded annually.
The shift from traditional to digital platforms is expected to accelerate in the next five years, according to the report, which says spending on digital will jump from 26% to 34% as more consumers gain greater access to content, Jerry Brown, associate partner, entertainment and media, PwC tells MiC.
“The growth of mobile is also one of the critical factors for digital,” he says. “When you look at that you can see there are additional revenue streams compared to traditional media like TV advertising which still remains strong throughout the next five years. We are also looking at things like mobile apps which will drive what we think will be about a three-fold increase in mobile TV advertising by 2015. We will see things like apps enabling you to watch TV wherever you are and inevitably the advertising will follow it. The idea it is that you could start watching on your way home and pick it up on your big screen TV, and the rights will flow across the devices.”
Brown says his main take-away from the five-year forecast is the continued strength of TV in the face of digital offerings.
“TV will remain a mass market,” he says. “Brands still need to [reach] mass markets out there and good TV is delivering on multiple platforms by becoming good at engaging social networking.”
PwC’s Global Entertainment and Media outlook for 2011-2015 marks the 12th edition of the report.