The world's most influential media, entertainment & technology show
11 - 15 September 2020
RAI Amsterdam
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Traditional media is set to see growth in advertising revenue for the first time since 2011, but TV is now generating less revenue than the Google/Facebook ‘duopoly’, according to the US-based World Advertising Research Center (Warc).
Combined traditional media is predicted to grow by 1.5% in 2020, reaching $324 billion in ad revenue. However, this growth pales in comparison with the tech giants, which are seeing nine times the growth of traditional media at 13.2%.
Advertising revenue for Facebook and Google-parent Alphabet is forecast to hit $231.9 billion this year, having surpassed TV revenue for the first time in 2019.
Alphabet alone is set to see a 10% rise in ad income, hitting $149 billion worldwide – the equivalent of 23 cents in every dollar, most of which is generated by Google’s core search platform. YouTube is set to generate $18.5 billion for Alphabet – 29% of the total online video ad spend worldwide.
Warc Data managing editor James McDonald said: “Internet ad growth has been far stronger than the state of the global economy would suggest, rising seven times faster on average since 2015. But, regulation aside, online platforms are bound by the law of large numbers, and revenue growth is easing for key players like Alphabet and Facebook.”
A return to growth for TV – which is predicted to rise by 2.5% to $192 billion – will boost traditional media revenue. Warc identified major events such as the US Presidential Election and the Summer Olympic Games as major drivers for this growth.
Radio is also expected to see growth (1.8%), as is out of home advertising (5.9%) and cinema (5%).
However, Warc notes these projections are subject to change and could be impacted by the coronavirus (COVID-19), which has already led to the cancellation of events such as Mobile World Congress and could impact the Olympics or other major sporting events that are set to drive revenue.
“We are yet to amend our forecasts in light of the COVID-19 situation, as we would expect – if the crisis is contained – displaced spend to be reallocated later in the year,” said McDonald.
“Advertising’s relationship with GDP is strong, but a slowdown in economic output as a result of the virus will not necessarily translate into reduced advertising investment.”
A screening of the UEFA Europa League match between Arsenal and Olympiacos last night was successfully delivered in 8K by BT Sport and Samsung.
The two firm’s made history with the UK’s first public 8K sports broadcast, which was delivered live from Arsenal’s Emirates Stadium using a bespoke BT Sport 8K outside broadcast set-up, deliver to Samsung QLED 8K TVs.
The showcase builds on BT and Samsung’s relationship, with the companies combining expertise and technology to create entertainment experiences that are at the cutting edge of innovation.
BT Sport operated from its TV studios, which it claims is one of the “industry’s most sophisticated”, where in recent years it has delivered world-firsts around virtual reality (VR), Dolby Atmos sound, 4K UHD picture quality and remote production.
BT Sport chief operating officer Jamie Hindhaugh said: “BT Sport has a rich history of leading the industry with broadcast innovation to provide our customers with the best viewing experience in the UK.
“Whether it’s last season’s launch of the world’s first regular high dynamic range service, BT Sport Ultimate, or, our world-leading remote production activity we’re constantly working to provide the best possible experience.
“Today’s broadcast in partnership with Samsung continues BT’s mission to take our viewers to the heart of sport and serve them the ultimate viewing experience.”
Last year the telecoms giant launched BT Sport Ultimate, the world’s first service to feature regular programming in High Dynamic Range (HDR), as well as 4K UHD and Dolby Atmos.
Today’s broadcast over IP enhances the potential of BT Sport Ultimate, a service which provides viewers with the best viewing experience possible on the platforms and devices they use to watch on, according to BT.
Samsung showcased the match on its flagship QLED 8K TV, offering viewers “a glimpse into the future of entertainment technology” and provided “an unprecedented viewing experience”.
With resolution that is four times that of 4K, with a total of 33 million pixels supported by HDR10+, the Samsung QLED 8K TV offers “picture perfection that makes viewers feel as though they are really part of the action”, Samsung said.
Samsung UK director of TV and AV Dan Hastings added: “For 50 years Samsung has pioneered the TV category; from the launch of the World’s first Digital Colour TV in 1998, the world’s thinnest TV in 2002, the first double-sided LCD screen in 2006 and then one of our biggest advancements to date; the first company to bring 8K TVs to the UK in 2018.
“We have shown that we never rest when it comes to pursuing meaningful innovations that could supercharge the way people consume content. It is great that we can add showing the first 8K broadcast to that list with BT Sport in 2020.”
Additional partners who supported the live 8K trial include:
Ofcom has published a five-year review of public service broadcasting highlighting a drop in viewership - with online failing to make up for live broadcast figures.
The UK broadcast regulator released an extensive review of the UK’s PSB’s achievements and responsibilities in delivering content over the last five years from 2014 to 2018.
The report titled: Small Screen: Big Debate – a five-year review of Public Service Broadcasting (2014-18) was published with the intention to inform its wider programme of work on the future of PSB with it key findings including audiences across the UK continue to “highly value the purposes of PSB.”
The Communications Act of 2003 set out the purposes and objectives of PSBs as well as the television services responsible for their delivery. Under this Ofcom was required to periodically review the PSB channels’ performance.
The broadcasters under review include BBC television services, ITV, STV, Channel 4, Channel 5 and S4C which includes the contribution that other broadcasters, audio and on-demand services have made to the PSB objectives.
In the report, Ofcom said: “Given the challenges facing UK broadcasting, we are examining how the positive outcomes of PSB might be assured for future audiences, within the current legislative framework as well as how PSB could be reimagined for the next decade and beyond.”
While audiences have a generally positive view of the PSB channels, viewing, especially among younger people has continued to decline in the last five years with “significant changes in the way in which people watch television.”
However, according to Ofcom, online and on-demand services such as the BBC iPlayer and All4 have not to-date fully made up for the loss of live broadcast viewing, particularly amongst younger people, who increasingly prefer global streaming services, like Netflix and YouTube.
The PSB system plays a critical role in the UK’s wider creative economy with investment by the PSB channels making up the bulk of the UK production sector’s revenues and how the money is spent is underpinned by regulation that supports a vibrant and diverse production sector across the nations and regions, Ofcom found.
In line with this investment, it also noted Sky and SVOD services have increased their investment in original UK content.
The report found: “YouTube and other online sources provide an enormous volume of content including a long tail of niche interests, but of varying quality and trustworthiness.”
The data published is designed to help provoke a broad and dynamic national conversation involving viewers, the broadcasting industry, Parliament, and regulators about how the benefits of PSB might best be assured for the future.
Ofcom is also examining the role of UK broadcasting, and the PSB channels, in the success of the wider UK creative economy.
In a separate report, it has also published a five-year review of Channel 4’s performance in meeting its media content duties.
It stated: “We consider that C4 Corporation largely met its media content duties over the review period, delivering a range of high-quality programmes and successfully innovating online.
“Audiences continue to rate Channel 4 highly including in terms of creative risk-taking and providing alternative points of view. They also valued C4C’s news and current affairs output as a trusted take on the day’s events and its coverage of diversity on-screen continued to be a strength. C4C also increased its investment in content aimed at older children and teenagers.”
It found Channel 4 “did not show as many new ideas on screen or source as many commissions from different producers over this review period.”
The review also considers the risks that the Corporation faces in delivering its duties in the future in the light of changing audience habits and wider market developments.
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