Advertising still works. Maybe better than ever.
The world of media and entertainment is a trillion-dollar industry globally and can be broken into a few parts or silos. There is:
- consumer spending, which is you and I buying everything from movie tickets to books and cable subscriptions.
- internet access where money is spent on buying streaming services, data or content.
- advertising which is just what you’d expect — organizations paying to put a message in front of a possible customer.
A new report issued by the global consulting and accounting firm PwC tracks trends in these three silos and they’ve discovered advertising is far from a relic that died with the TV series Mad Men.
It is consumer spending that has fallen farthest in the last five years. Once 40 per cent of the overall industry, it is on its way to 33 per cent. After peaking in 2020 with the pandemic, internet spending is now third.
Advertising, though, is enjoying a renaissance. Five years ago the weak sibling, it is now in growth mode, poised to become the industry’s primary revenue generator.