Advertising Grew in 2016, But Not for All Media
In 2016, the advertising market grew at nearly 7% over 2015. But that rising tide did not raise all boats.
Last year television, out-of-home and digital saw year-over-year increases. Magazines (-9.1%) and newspapers (-13.9%) suffered the largest declines. Radio only decreased by 0.5%. Digital increased by more than 13%, television by 4.4% and out-of-home grew by 6.9%. (The percentages were released from Standard Media Index and reported by Marketing Charts.)
There were predictions last year that digital would grow at a rate of 26% or more. This lower growth rate was the result of many larger brands returning to TV. The TV increase was sparked by sports and this trend should continue, with many of the sports contracts locked in for the next 10 to 20 years with broadcast and cable outlets.
The trend lines are obvious: Digital will continue on an upward growth curve although it is slowing. It’s not so sure for the other media due to lack of sales opportunities or lower results. If you are not using digital, we suggest you allocate at least 25% of your marketing budget to digital and and begin to test. The trend could impact your growth line as well.