Carat Expects U.S. Spending On TV To Grow 3% in 2014

jon.lafayette@futurenet.com (Jon Lafayette) — Wed, 10 Sep 2014 17:00:00 +0000

Media agency Carat says it is optimistic about the U.S. ad market, and forecasts that spending on TV will rise 3% this year.

Overall, Carat sees 4.9% growth in the advertising market this year--up from an early forecast of 4.3%--and 4.6% growth next year “thanks to a continually improving economic landscape.”

The increases will put U.S. ad spending exceed their pre-recession peak for the first time by the end of 2014.

In its forecast, Carat says U.S. digital spending will grow faster than all other media, posting a 16% gain, with mobile up 37% and online video spending jumping 40%.

Globally, Carat sees ad spending increasing 5% this year, up from a previous forecast of 4.8%. Carat’s forecast of a 5% gain in 2015 is unchanged. Spending in Western Europe is predicted to turn positive after two years of declining ad spending, boosted by a strong market in the U.K.

Growth will be faster in the Asia Pacific and Latin America regions, with some markets in those regions showing double digit increases.

Worldwide, spending on digital is expected to increase 16.1% in 2014, with its share of spending hitting 20.5% in 20014 and 22.6% in 2015.

Study: OTT in Half of World’s Homes By 2020

Mike Farrell — Tue, 09 Sep 2014 16:45:00 +0000

Over-the-top video services will be available in 706.5 million TV homes worldwide by 2020, nearly double the 374.4 million homes expected in 2014, according to a report by Digital TV Research.

Asia will see the most growth – its report Global Online TV & Video Household Forecasts predicts that Asia Pacific will gain 233 million OTT homes between 2013 and 2020, about 61% of the global additions during the same period. The report stated that China alone will add 140 million OTT homes by 2020, taking its total to 206 million homes – more than all of Europe – and will overtake the U.S. in 2014.

By 2020, 47.6% of the world’s TV households will view online television and video, up from 15.4% in 2010, according to Digital TV Research. South Korea (79.8%) will have the highest proportion by country by 2020, with India (21.9%) at the other end of the scale.

Subscription video on demand subscribers should rise to 199 million by 2020, according to the report, more than double the 83 million expected by the end of 2014. North America’s share of the total will fall from 57% in 2014 to 34% in 2020. While that shows that most of the growth in OTT services will happen outside the U.S., America will still contribute 62 million homes to the 2020 total, with Japan in second place with 20 million homes.

Digital Research estimates that by 2020, 13.4% of the world’s TV households will subscribe to an SVOD package like Netflix or Amazon Prime, up from only 1.6% in 2010 and an expected 6.1% by year-end 2014. The proportion in 2020 will vary from 49.6% in the US and 48.5% in Sweden to 2% in India and Vietnam. Ten countries will have SVOD penetration in excess of one-third of TV households by 2020.

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Carat Expects U.S. Spending On TV To Grow 3% in 2014

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