Traditional media advertising, spanning the printed press to television, is set to take a backseat in the economic recovery (such as it is) with new technology expected to revive the industry.
At least that is according to an annual survey carried out by PricewaterhouseCoopers which was published in The Times yesterday. Revenue across the advertising industry fell almost 4% last year, dropping slightly below £50 billion. Spending on television advertising in the UK alone fell 11% in 2009, with radio fairing little better at a slump of 7% over the same period.
Yet PwC is forecasting that revenue across the entire industry is expected to grow until 2014, where it is likely to top the £60 billion mark (20% up on 2009). Much of this growth is expected to come from digital media outlets.
As recession has rocked the economy, demand for smartphones, such as the iPhone, Blackberry and Android devices, has continued to grow. With its ability to target the consumer round the clock, the portability of the smartphone has become the advertising industry’s dream, linking the industry to over four billion worldwide mobile users.
While the smartphone currently makes up only a minority of mobile devices on the market, the increased availability of high-speed mobile broadband, and operator subsidies aimed at boosting data traffic, expect these numbers to grow considerably for the foreseeable future. Indeed smartphones, along with tablet computers such as the iPad, will inspire a revival in the advertising industry. PwC says mobile advertising revenue will reach £335 million by 2014, a rise from £75 million in 2009. While these figures seem small in comparison with the overall revenue expected to be generated by the industry, the sharp rise in mobile advertising cannot be ignored.
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New Media Holds the Key to Recovery
Posted by Daniel Vano June 16 2010 03:35pm