IHS: online to replace TV as top ad medium by 2020

Ericsson mobile videoOnline will replace TV as the number one global advertising medium by 2020, according to new research by IHS Markit.

The Global Advertising Trends report from IHS Technology’s Advertising Intelligence Service claims that while the TV market still benefits from big brand budgets, online will take pole position within the next five years.

“In some countries such as the UK, online already accounts for almost 50% of total advertising revenue and will only keep getting stronger,” said report author and IHS Technology principal analyst, Eleni Marouli.

According to IHS estimates, global ad revenue grew 7.1% in 2016 to US$532 billion (€505 billion) with TV the top performer accounting for US$192 billion, or 36%, of global revenue.

Online advertising accounted for almost US$160 billion, or 30% of global revenue, followed by print advertising in third with an estimated US$101 billion, followed by radio with US$47 billion in revenue.

“Quadrennial events such as the Olympics, the European Football Championship and the US elections helped keep TV on top,” said Marouli.

In the US, TV advertising revenue accounted for roughly 38% of the country’s ad total last year, but online was just behind at 36%. In China, online advertising revenue was estimated at 17% greater than TV ad revenue, a difference of US$15 billion.

Read Next