TV ad dollars expected to drop in 2020, while streaming’s share set to rise

Digiday 18 Jun 2020 04:05
Image credit: Ivy Liu
June 18, 2020 by Tim Peterson

In the latest example of the coronavirus crisis accelerating traditional TV advertising’s contraction, TV networks will need to count on streaming to help buoy their advertising businesses this year as the amount of ad dollars going to traditional TV is projected to fall while streaming’s share is on the rise.

Advertisers will spend $61 billion on total TV advertising in the U.S. in 2020, according to estimates from GroupM. That figure—which includes national TV, local TV and what GroupM dubbed “digital extensions” like Hulu and Roku — represents a 7% drop compared to last year. Magna painted a similarly glum picture in its forecast released this week. The IPG unit projected that advertisers will spend 13% less money on U.S. national TV this year compared to last year when including cyclical events like the election.

The $61 billion figure “might surprise people because you hear people talk about the $70 billion TV market,” said Brian Wieser, global president of business intelligence at GroupM. For years, people have described TV advertising as a $70 billion market after it crossed that threshold in 2011. But the description has become dated.

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