The Ofcom Communications Market Report is a pretty good bellwether of changing consumer habits. And, like boats reacting to the tide, those changing habits dictate how media companies will act over the next few years, as they change their priorities to benefit from shifting audience attention.
Here are three key takeaways from the latest report that shine a light on where media companies will lie over the next few years.
The US linear television industry has hit ‘permanent recession‘ in terms of the proportion of the total ad spend it commands, according to Magna. The rapid rise of digital ad spend has necessarily come at the expense of other areas and television, despite its reputation for delivering the best ROI of any medium, is no longer looking quite so unassailable. Mediapost’s Joe Mandele writes:
“‘National television ad sales will decline between -2% to -3% going forward,’ Magna concludes.
The picture is not any prettier for the local TV ad marketplace, and with the exception of election years, Magna does not expect any growth for local TV at all.”
The same is true to a lesser degree in the UK, where AA/Warc predictions in January put the % YOY change in television ad-spent at -2, even including the 11.4% increase in ad spend against VOD. That’s despite