Internet Is Set to Overtake Newspapers in Ad Revenue According to PwC Survey

The Internet is poised to overtake newspapers as the second-largest U.S. advertising medium by revenue behind television, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook for 2010 to 2014. The online ad business, excluding mobile ads, is set to expand to USD 34.4bn in 2014 from USD 24.2bn in 2009, according to the report, which PwC plans to release Tuesday. Newspapers, meanwhile, continue to suffer from a decline in advertising revenue. According to numbers released by the Newspaper Association of America earlier this year, print advertising revenue dropped 28.6 percent in 2009 to USD 24.82bn. The PwC report estimates that print advertising in newspapers will hit USD 22.3bn by 2014. Shifts in consumer behavior, potential for inventory on the Internet, and increased broadband penetration in the U.S. are key factors in PwC’s projections, according to David Silverman, a partner at PwC. The report is particularly bullish on the growth of advertising across interactive media, video and email — predicting that this segment of the market will reach USD 6.6bn in 2014 from USD 4.7bn in 2009. Online TV is expected to propel this segment because it has limited ad inventory within a program, allowing online TV providers to charge premium rates. The mobile advertising market also is poised for growth as wireless networks are upgraded and more Internet-enabled smart phones hit the market.


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