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June 2, 2011

Ad Dollars Spending Moving Towards Digital

After dropping by 18.5% in 2009, traditional media ad spending is treading water. Some media, like TV, are keeping their audiences—and even growing their ad dollars—while others face declining consumption and spending.
After plunging by 18.5% in 2009, ad spending on traditional media is on a slow rebound. eMarketer estimates spending was up 2.1% in 2010, to $127.2 billion. But rather than making a true recovery, spending will seesaw in coming years, hovering under $130 billion through 2015—far from the $165.94 billion recorded in 2007 on the eve of the recent recession.
Online and mobile ad spending, by contrast, will post real gains. The shift in consumer time spent with the internet and mobile phones that has been under way for several years continues—and advertisers are following this audience.
For some traditional media, such as newspapers, the shift to digital has spelled serious difficulties. But other media, like television, are still key to reaching a mass audience and a critical component of any major advertiser’s playbook.