Advertisers are cutting the cord on TV spending. And small businesses could gain a lot as TV’s relevance continues to fizzle in an increasingly digital world.
Global revenue from digital advertising is poised to surpass that of traditional TV by 2017, according to a recent Magna Global study. That torch-passing is expected to happen even sooner in the U.S.—digital advertising revenue is expected to outperform TV by 2016.
“Traditional linear TV advertising stopped growing in 2015 for the first time outside a recession year,” said Vincent Letang, director of global forecasting at Magna Global, in the report.
While TV ads are down, the ad industry as a whole is projected to more than double its growth next year with digital advertising as the driving force behind the boom.
For entrepreneurs and small businesses looking at innovative and low-cost ways to market, this new advertising environment can be advantageous. Social media platforms, such as Facebook, are always tweaking their technology to enable small businesses with tight budgets to find and reach new customers. Some even target small businesses directly with tips and best practices for effective marketing strategies.
When looking at the explosive popularity of video on social media, current trends are also reflecting the ever-more symbiotic relationship of businesses and digital media. However, it is important to keep in mind that the “landscape changes so quickly in digital advertising that ads that are popular now—social, video and the mainstay, search—could be supplanted by new forms, eventually making the current disruptors the disrupted,” says Bloomberg’s Rani Molla.
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