TV Still Garners Largest Share of U.S. Ads


eMarketerGraphThis year will be a challenging one for advertising in the U.S. as global market fluctuations and dropping oil prices contribute to the strain on the economy. Although paid media spending will rise by 5.1%, growth will be slower than previously expected as advertisers pare investments on traditional media formats like TV and radio.

eMarketer estimates U.S total media ad spending will top $192 billion for the year, partly driven by the US presidential election and the Rio Summer Olympics.

Digital media ad spending, which includes mobile, is surpassing all expectations. Outlays will jump 15.4% in 2016 to $68.82 billion, accounting for 35.8% of total media ad investment. By 2020, digital ad spending will reach $105.21 billion, growing its share of total media spending to 44.9%. eMarketer has increased its projections for total digital ad spending in 2016 as mobile ad dollars are rising faster than previously expected.

TV advertising is rising at a 2.5% lukewarm pace. Declining viewership and more competition from video-on-demand and digital streaming services are challenging traditional TV advertising sales.

While advertisers pull back on investments, TV will still benefit from advertising around the presidential election and the Rio Olympics.

eMarketer projects $70.6 billion in TV ad spend this year, $68.82 for digital and $14.12 for radio. Compared to last year’s projections, TV is up $1.72 billion, digital is up $9.21 and radio is down $0.15.

TV will still garner $36.8% of total media spending in 2016, the largest share, according to eMarkter.