US TV Ad Spends to Drop in 2018: eMarketer

Total digital ad expenditure will rise 18.7% this year to $107.30 billion, while OTT platforms, which currently have a small, but increasing share of the market, will continue to be significant.

by exchange4media Staff
Published - Mar 29, 2018 1:12 PM Updated: Mar 29, 2018 1:12 PM
According to the latest data from the market research company, eMarketer, TV ad spends will continue to decline this year, due to the rise of cord cutting and over-the-top (OTT) viewing, therefore, outlays on TV ads will dip 0.5 per cent in 2018 to US$ 69.87 billion. Consequently, TV’s share of US ad spending will decrease from 33.9 per cent in 2017 to 31.6 percent in 2018.

However a slight improvement is expected in 2020, due to to the US presidential election and the Tokyo Summer Olympics, but will again drop in the coming years and will likely plunge to less than a quarter of the total ad expenditure by 2022.



According to Monica Peart, Senior Forecasting Director, eMarketer, “The shift of audiences to OTT viewing is changing the climate of the TV ad market. As ratings for TV programming continue to decline, advertiser spending will also continue to see declines, especially in years that do not boast major events such as, presidential elections and Olympic games.”

On the other hand, total digital ad spending in the US will rise 18.7% this year to $107.30 billion. OTT platforms, which currently have a small, but increasing share of the market, will continue to be significant.



“Over-the-top platforms are growing in number and size, and many compete directly with pay TV by offering bundles of live channels at attractive price points. Consumers who want to cut or shave the cord now have a wealth of options that didn’t exist a couple of years ago. And we expect the offerings to become even more robust as more players enter the market.” said eMarketer Principal Analyst Paul Verna. For more updates, be socially connected with us on
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