More Bad News: 2015 Ad Spending Growth Forecast Sinks Below 1% -

MyersBizNet is adjusting its annual 2015 advertising spending forecast downward projecting an overall industry annual increase of less than one percent the most conservative forecast of any of the leading market analysts This is the earliest MyersBizNet has adjusted its annual forecasts in the past decade reflecting a softer than expected first quarter and secular shifts in spending that run counter to several overall economic trends Typically declining unemployment and a strong stock market would represent positive indicators for advertising investments While other forecasters are projecting total 2015 ad spending growth ranging between 21 and 46 Scroll down for continued analysis and insights2015 MyersBizNetamp160amp160amp160amp160amp160Advertising Spending Forecastamp160amp160amp160amp160amp160UPDATED 4115 Data reportedamp160 in 000000amp160amp160amp160amp160quotLegacyquot refers to revenues generated for traditional nondigital advertising and marketing spend within each categoryUpdatedOriginalamp160412015112015amp160amp160amp160amp160amp160Advertising Spending 2015 Changeamp160 Changevs 2014vs 2014Broadcast Network TVamp16045183932718731Legacy72160865816328Digital20023072502403CableSatellite Network Televisionamp16018265230727205Legacy28249410825454Digital17515823001751Local ampamp National Spot Broadcast TV1142045511220497Legacy1231932112319321Digital8011341201176LocalRegional Cable TVamp160754852734865Legacy824660824660Digital120192200205Broadcast Syndicationamp160432188502172Legacy502057602036Digital75131120136Digital PlaceBased Video Media excl cinema481015621029Cinema Advertisingamp1602876435769Legacy2876335768Digital15011501Online Originated Video Content Advertisingamp16060036886003688Interactive VOD ampamp Addressable TV Advertising650378800413Terrestrial Radioamp16021154211815460Legacy36139333613933Digital15014881801527Internet Originated Audio35016463501646Newspaper Advertisingamp16038225293222675Legacy90166878216833Digital15058421505842Consumer Magazines Advertisingamp16020150922515016Legacy72122916812344Digital30028012402672OutofHomePlaceBased excl Cinema ampamp DOOHV057609337903Legacy246830187124Digital200779200779Media Directed SocialPromotionSponsorshipsNative80985312010218Branded EntertainmentProduct Placement407838407838Online Originated Display Banner Advertising607047607047Mobile ampamp Apps Advertising incl Mobile Search7201197972011979Videogame AdvertisingVirtual Currency4018481201990Total Advertising09179118 21181141 amp160amp160amp160amp160amp160Analysis continuedMyersBizNet believes that when first quarter data is released their projections will be adjusted It39s unlikely however that they will be as conservative as ours until well into the year at which time we may hopefully be proven to have been overly pessimistic Our analyses factor in overall retail sales that remain sluggish and consumer confidence that is not rising commensurate with growing employment While MyersBizNet includes more digital advertising categories in our data than most other analysts search and social marketing investments are reported separately in MyersBizNet BelowtheLine PromotionalShopper Marketing Data ampamp Forecasts and we therefore do not include much of both Facebook39s and Google39s revenues which are generating double digit growth Direct marketing is also reported separatelyMarketers are accelerating the shift of budgets to several digital video providers This growth is included in our advertising data Online originated video advertising investments differentiated from the digital video revenues generated by TV networks print media companies and digital placebased video are forecast by MyersBizNet to increase 60 to nearly 37 billion Mobile and appbased advertising the fastest growing sector is forecast to grow 72 to nearly 12 billionWe are projecting a fullyear 72 decline in legacy broadcast network ad spend and a 28 decline in cable network legacy ad spend This is significantly more conservative than our prior estimates of 27 and 08 respectively and is not sufficiently offset by projected by gains in digital spending with the networks which MyersBizNet has also reduced from our original estimates Legacy and digital ad spending with broadcast and cable networks is forecast to decline 45 and 18 respectively for the full yearWhile networks will likely sellout of their available digital video inventory overall downward pricing pressure will impact both legacy and digital inventory Most network sellers and network media buyers are bracing for a challenging Upfront season with a perfect storm brewing Declining overall ad spending slowing Upfront demand multiple alternative options intensifying procurement led pricing requirements ratings erosion increased cost for tent pole franchises such as sports and agencies39 needs to validate their competitive value are combining to create strong and tumultuous headwinds Additionally networks such as AMC FX Hallmark and a handful of others have experienced ratings gains are increasing their original programming have competitive base rates and have additional inventory for packaging purposes These networks offer viable alternatives Larger budgets are also flowing to the more competitive and cost efficient Hispanic networksSome TV networks are offering new performancebased research and marketing partnerships which help influence share allocations but are unlikely to generate increased spending or negate downward pricing demandsNewspaper spending forecasts have also been slightly reduced and we have actually increased our forecast for consumer magazine ad spending from a projected decline of 25 to 20 based on anticipated growth of digital ad spend Detailed 2010 to 2020 data and forecasts are available to MyersBizNet member companies by request

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More Bad News: 2015 Ad Spending Growth Forecast Sinks Below 1% -

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