Tuesday, July 31, 2012

Global Entertainment & Media Outlook 2012-2016

PWC are predicting a moderate, 5.3 % growth in the global advertising industry today with the release of their 2015 outlook. 

The global advertising market is expected to grow from $434 billion in 2010 to $588 billion in 2015, increasing on average by 6.2 percent per annum (2011-2015). 

The correction is welcome after the hard trading of 2008-09.  

The PWC segment categories are a little confusing with digital and social grouped into the generic category of 'internet' which doesn't provide a lot of insight; focusing on the channel rather than the device. 

The Forbes VSS Industry Forecast 2011-2015 predicts 5.7% growth with consumer internet and mobile fueling spend at 18.1%. PWC predicts around half this at 9.6%. 

The PWC newspaper growth rates between 1.0 and 2.5% seem optimistic considering the revenue drags experienced throughout the US and major restructure announcements in the Australian industry. The Forbes VSS Industry Forecast 2011-2015 predicts a global decline of 3.8% which seems more realistic. 

Static numbers in outdoor and trade media support the theory that digital will continue to extend the media mix rather than cannabalise it-encouraging news for both media companies and agencies. 

The challenge now is for the media companies to redesign their organisations as quickly and painlessly as possible so they can deliver advertising products that work. Traditional revenues are still well behind what's needed to transition to digital and the people managing the heavily siloed structures are not designing products that reflect consumer media consumption. 

How fast newer players such as Google, Facebook and Twitter can design and sell ad products that will compete for significant amounts of spend (10%+) still remains uncertain. 


Posted via email from cjlambert's posterous

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