Online ad growth leading charge in 2017 report: PwC
The company's latest Global Entertainment and Media Outlook: 2013-2017 says total online advertising is expected to grow by 14.5% in the next five years.
Overall, total internet advertising is expected to post the biggest gain in the next five years, with growth of 14.5% expected between 2013 and 2017.
That number comes from PwC’s latest Global Entertainment and Media Outlook: 2013-2017. According to the report, in the next five years, total videogame advertising will grow by 13.4%, OOH advertising will grow 6.6%, radio will grow 2.8%, television advertising will grow 2.3% and consumer magazine advertising will rise 0.5%.
In terms of industry issues, the report’s sources say the tipping point of consumers cutting the TV cord won’t happen within the next five years.
Scott Moore, president of broadcast at Rogers Media told PwC, “As an industry we’re really good about announcing the death of our business before all the vital signs have been checked.”
According to PwC US Consumer Intelligence Series numbers, 70% of people polled had a cable subscription, 41% had Netflix, 26% used satellite TV, 16% used iTunes and 2% listed other as their source of pay TV.
The PwC Report suggests the increase in OTT subscribers means additional opportunities for producers to sell their content, adding the requirement for a Canadian broadcast licence shouldn’t always be necessary for distribution, especially if there are other viable options for getting content out there.
PWC suggests there is an opportunity for the Canadian media industry to work together to create a curated content platform for consumers that includes home-grown and global content.
And how should the media industry incorporate the second screen into its plans? PwC’s report says media companies should collaborate with sponsors on advertising, noting digital advertising is expected to grow from a 30% share in 2013 to 41% by 2017. It says media companies should also harness the power of super-fans online and nurture conversations online, not just focus on the product itself.
Creating primary and second-screen content can be costly, and PwC says media companies on other platforms should consider doing what Canadian newspaper companies are doing and sharing services for different parts of the business. These kinds of alliances can bring the same benefits as mergers and acquisitions, while still keeping companies autonomous.