This year, “core Internet spending” will surpass broadcast TV — including its offshoot online services — according to a forecast from FTI Consulting, reports deadline.com.
The report, in part, added:
“The firm projects that Internet spending will rise 11.4% to $41.8 billion while broadcast lifts just 0.9% to $38.9 billion. Cable, also including online, is expected to be up 6.2% to $33.4 billion. Advertisers still spend more on direct mail — $44.2 billion — than they do on Internet. But that will change in 2016.
“In 2018, FTI expects advertisers to lay out $55.6 billion for online, $45.5 billion for broadcast, $40.0 billion for cable, and $44.2 billion for direct mail.
“While it is difficult to completely isolate one factor that is driving changes in ad spending from the historical trends, our model suggests that digital substitution is the primary driver contributing to changes in the television ad ecosystem today,” says FTI Media & Entertainment Team Co-leader Philip Schuman, stated the report.