TV Spending Moving Over to Digital

Linear TV ad spending is projected at $66B in 2016. With digital stealing away TV ad spending dollars, 2 questions remain; how much money has shifted already from TV to digital and why? As it stands, $1.5B had already shifted from TV to digital in 2015. Despite this being a less than 3% of the projected $66B, this demonstrates how much opportunity is left in this market. But, it's important to understand the factors that contributed to the already present shift from TV to digital amounting to $1.5B:

  • Underperforming programming – TV shows that aren’t meeting their ratings means bleeding dollars for the advertiser.
  • Changing media consumption habits- Some of the most popular shows have been watched in one sitting thanks to the likes of Netflix or Hulu, for example, that is changing how we watch TV. As you can imagine, with more eyes on video streaming websites and less on Linear TV, a shift was necessary to maintain lost dollars.
  • Cord-cutting- With the change in viewing habits comes the rise of video streaming subscriptions. It also means, for some consumers, pulling the plug altogether on cable television.
  • Appealing video content online - After only 10 years in business, YouTube is now believed to be garnering $7 billion in annual revenue.


Now that MediaRadar has integrated TV ad intelligence into the platform, we're eager to use our numbers to try and understand the opportunities left outside of traditional TV and Video Streaming websites.


Share this