The Interactive Advertising Bureau, the reputable virtual advertising industry group, released its most recent report forecasting a modest expansion in virtual media advertising spending in the United States by 2020.The IAB expects virtual advertising spending to increase by 6% on the contrary, they expect classic media advertising to be minimized by 30% until 2019.
Overall, the IAB expects advertising completed through the end of the year to drop just 8%. These figures correspond to what other companies, adding Zenith Media, had previously forecast this summer.
At the beginning of the start of the Covid-19 pandemic, when orders from the house began to collapse the economy around the world, some observers expected a greater drop in ad spending until 2020.
The IAB has forecast a 24% reduction in spending on classic television advertising by 2020 compared to 2019, however, they see a sharp increase in connected television advertising, which they say will increase by up to 19% year-on-year.
Many networks and advertising agencies are relieved to see what appears to be a V-shaped bounce for the entire advertising industry in the United States.
However, spending on classical television and classic print advertising remains in downward secular trends.Covid’s effect on the economy has added more pain to those already suffered by classical means.
A senior advertising technology executive, who is not authorized to talk to the press, said the advertising industry is definitely experiencing a “V-shaped uptick in the virtual advertising industry.”He continued: “Our advertising earnings for the third quarter of this year will be equivalent to our earnings for the third quarter of 2019, which is remarkable.”It also expects advertising investment in the fourth quarter to be strong, likely outpervising last year’s fourth quarter.Traditionally, the fourth quarter has been the highest living quarter of the year for advertising earnings.
Mike Vorhaus founded Vorhaus Advisors in November 2018.Previously, Mike worked at Magid for 24 years.Mike founded the Magid Internet practice in 1995 and the
Mike Vorhaus founded Vorhaus Advisors in November 2018.Previously, Mike worked at Magid for 24 years.Mike founded the Magid Internet practice in 1995 and began practicing Magid Gaming in 2001.Mike supplies facilities to major operating companies, as well as start-ups and investors.It focuses on strategy, investment opportunities, product progression and marketing.Mike is a member of the Board of Directors of Perion (Nasdaq: PERI).Mike has given the impression at MSNBC, CNBC, CNBC Asia, NPR and Fox Business.Mike has been cited in various newspapers and websites, including The New York Times, The Wall Street Journal, USA Today, Reuters, MarketWatch, TheStreet and others.In the past, Mike wrote a monthly column for Ad Age.https://www.linkedin.com/in/michaelvorhaus/