Digital to spur ad spending growth in next four years: PricewaterhouseCoopers
US advertising spending will grow at a 4.2% compound annual growth rate (CAGR) through 2015 to $208 billion, according to a report released June 14 by PricewaterhouseCoopers (PWC). The advisory firm also reported that US ad spending increased by 5.4% in 2010, rebounding from a 14.4% drop the prior year.
Internet ad spending will increase by a 12.2% CAGR in the next four years, while TV advertising will grow by 4.9% during that time. Directory and newspaper advertising will see 1.8% and 0.2% compound declines in ad spending, respectively, in the next four years, according to PWC.
The advisory firm measured ad spending as one of three entertainment and media categories, along with consumer and end-user spending. Overall, it found that global digital entertainment and media spending will grow from $1.4 trillion in 2010 to $1.9 trillion in 2015, increasing at a CAGR of 5.7%. US entertainment and media spending will grow at a 4.6% CAGR to reach $555 billion in 2015, according to PWC.
The firm also predicted that global digital entertainment and media spending will account for more than 58% of all growth in the next four years. US digital spending will account for 28.5% of all entertainment and media spend by 2015, up from 20.6% in 2010, according to PWC.
A PWC representative could not be reached immediately for comment.