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Digital ad spending will surpass video ad spending by 2017

Long-time media analyst Michael Nathanson says that gains in online advertising are coming at the expense of traditional TV and other media. TheWashington Post reports that Nathanson of Moffett Nathanson Research advised investment clients that “ad spending on TV will decrease by about 3 percent each year through 2020” and predicts that online ad spending will surpass video ad spending in the next two years.


The Post continued:  “That assumption is based largely on declining viewership. In August, cable TV ratings were down 9 percent. Those ratings were particularly concerning amid increased ‘cord cutting’ of cable TV service. In the second quarter, 566,000 cable and satellite subscribers canceled their service.”


This research is further evidence that online entertainment and advertising markets are growing as video consumers shift their viewing habits away from traditional cable TV services.

The Internet is slowly but surely killing TV (Washington Post, Sept. 9, 2015)