Print Recovery By 2013?
PricewaterhouseCoopers study says print advertising will rebound to $11.2M.
Print advertising will fall 22.8 percent to 9.8 billion between 2008 and 2010 but will rise 14.3 percent to $11.2 billion by 2013, according to PricewaterhouseCoopers’ new Global Entertainment and Media Outlook. However, circulation spending will continue to fall to $8.4 billion in 2013, down from $9.7 billion in 2008.
The report forecasts media spending in the U.S. to increase at a 1.2 percent compound annual growth rate (CAGR), possibly reaching $495 billion in 2013. But a number of individual segments, including b-to-b publishing (-3.3 percent) and consumer magazine publishing (-1.7 percent) are expected to decline.
Meanwhile, a number of other segments in U.S. media are forecasted to grow, including Internet access (9.1 percent CAGR), Internet advertising (6.3), video games (5.8), TV subscriptions (5.5), filmed entertainment (3.3) and out-of-home advertising (2.5).
“The current economic slowdown, shifting consumer behavior and new ad-supported revenue models are triggering acceleration of digital migration,” Bill Cobourn, PricewaterhouseCoopers’ U.S. media and entertainment practice leader, said in the report.
According to the report, digital spending will continue to be the industry’s main source of growth, with revenues accounting for 25 percent of total sales in 2013—up from 17 percent in 2008. PwC also predicts that a “new generation” of ad-supported revenue models will emerge as digital behaviors become more dominant among consumers.
“The challenge is to identify ad models that are able to withstand the downward pressure on ad rates in the digital environment,” Cobourn said.