Cinema Spending Biggest Victim of Digital Surge

Cinema spending is the latest victim of the ongoing declines in traditional media, according to figures from the Advertising Association and Warc. Cinema spend is expected to reduce by 15% in 2013, on the back of a 9% decline in the first half of the year. TV spend is robust, while all other media show declines, with the exception of direct mail, which is static.

While digital spend is clearly the fastest-growing sector, driven by display, and mobile, the speed of growth is slowing slightly, down from 16.3% in H1 to 13.2% in H2. TV spend was the only category to actually increase its rate of growth between the first half of 2013 and the full year, from 2.1% to 5.3%.

According to GroupM’s “This Year, Next Year” research, cinema spend will decline slightly as a proportion of total ad spend between 2012 and 2013, so the falls tracked by Warc and the Advertising Association could be simply monitoring a correction for cinema that will now stabilize.

In the four years tracked by Group M, internet spending growth increases the most, up almost 15 percentage points while every single other category will decline, with Radio, TV, outdoor and cinema spend showing the smallest losses overall.

Courtesy of eMarketer