2020 Will Be TV Ad Spending's Last Hurrah
Television ad spending in the United States has consistently stuck around $70 billion for the better half of a decade, despite the rise in cord-cutting. But the resiliency of the television industry may start to fade next decade. Big events in 2020 -- the Olympics and the U.S. presidential election -- will support growth in ad spend of about 1% next year, according to estimates from eMarketer. But ad spend will start to decline relatively quickly in 2021, and it's unlikely to ever bounce back to the level we saw this decade.
Media companies with significant investments in traditional television, including AT&T (NYSE: T), Comcast (NASDAQ: CMCSA), and Disney (NYSE: DIS), have already taken steps to diversify with over-the-top streaming options. Each will have an ad-supported streaming service by 2021.
But the transition in ad spend from traditional TV to connected TV has the potential to have a much more outsized effect on smaller companies like Roku (NASDAQ: ROKU).
Source Fool.com
