Those who predicted that the internet would kill TV were probably the same people that said TV would put movie theaters out of business. A look at entertainment and media ad spending so far this year proves otherwise.
Earlier this month, all of the big five TV networks showed gains in ad sales during the Upfronts in New York. CBS pulled in a projected $2.5 billion to $2.55 billion in TV ad sales compared to the $2.4 billion they made last year. NBC took in $1.7 billion compared to $1.6 billion last year.
Today, the New York Times is reporting on new stats from PricewaterhouseCoopers which shows that entertainment and media ad spending in 2010 grew by 5.4% compared with 2009.
In 2009, the company said, American ad spending fell 14.4 percent from 2008. The shift from minus 14.4 to plus 5.4 represents the largest year-over-year swing in the annual reports.
Here’s an even nicer set of numbers:
The total for entertainment and media spending in this country is to grow to $555 billion in 2015, from $443 billion in 2010, according to the report, for a compounded annual growth rate of 4.6 percent.
The report predicts that TV advertising will benefit most from the gains, so the internet hasn’t won that war just yet. As expected, magazine and newspaper revenue is expected to drop, but paid digital content is rising and might offset the difference in another few years.
Healthy increases in ad spending is good news for everyone. If advertisers are spending, that means consumers are spending and spending is good. It’s important, even, and that’s why I’m going to go out to the store this afternoon and buy a bunch of the things I saw advertised on TV last night. I encourage you to do the same.