NEWS29 March 2016
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US — 2016 is set to be a challenging year for advertising in the US, according to the latest report on paid media spend from eMarketer.
Though paid media spending is predicted to reach $192bn this year, which is a rise of 5.1%, growth will reportedly be slower than previously expected as advertisers trim investment in traditional formats such as TV and radio.
The report claims that conditions in the US have become less supportive for economic growth this year – highlighting a strong dollar, global market fluctuations and plunging oil prices as contributing to a strain on the economy – which has led to the estimates being weaker than previously expected.
The outlook for TV advertising growth in particular is described as ‘lukewarm', rising by just 2.5% this year. It is set to take 36.8% of total media spending in 2016, with digital taking 35.8%. However, according to eMarketer, investment in digital is flowing at more than six times the rate of TV, so its share of spend is expected to overtake that of TV in 2017.
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