Digital Ad Spend Overtakes Traditional Media For The First Time - Broadcasters Suffer Severely
Reporting by the Financial Times has indicated that overall advertising spends on digital platforms such as Google, Facebook, Twitter, Alibaba, and other more localised platforms will, in 2020, overtake spending on traditional media.
According to the media buying agency GroupM, digital marketing took more than 50 per cent of the US$530 billion advertising industry.
Although the takeover from traditional media has been building slowly since the turn of the millennium - and the global advertising market place has been gradually shifted - it has now gained astronomical momentum due to the coronavirus pandemic.
According to the Financial Times report, an executive from a WPP-backed agency agreed that "in the last three months, the industry has seen three years worth of digital acceleration taken place.
This fundamental shift in market reality is and will continue to impact broadcasters and content publishers disproportionally, and the key question that ought to be asked remains: How can broadcasters stop the haemorrhaging?