Advertisers Follow the Audience to Video Games

  |  September 13, 2005   |  Comments

Broadcast advertising revenue will give way to inventory in video games and online in 2006, Jack Myers forecasts.

Ad spending will shift from broadcast television to other media channels in 2006, according to a forecast by media guru Jack Myers. Video games will experience the largest growth, seconded by online advertising, the report concludes.

According to the Jack Myers 2006 Marketing and Advertising Spending Forecast, in-game advertising is expected to grow by 40 percent in 2006, though it will still represent less than one percent of total ad spend. Online advertising will increase by 27 percent to reach a 6.4 percent market share. Movie screen advertising is expected to grow by 25 percent; branded entertainment, local and regional cable, and custom publishing will each grow less than 20 percent each.

Broadcast television will recede from an 8.6 percent market share in 2005 to an even 8 percent share in 2006. Broadcast, which excludes Hispanic TV, is forecast to be the only medium to lose revenues next year.

Over 2005, marketing communications budgets are due to increase by 6 percent, with 30 percent dedicated to advertising, Myers concludes. Next year he expects the overall marketing budget increase to come in at 5.8 percent, with 30.1 percent committed to advertising.

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