MoffettNathanson: ‘wide-eyed optimism” for advertising rebound | Media Analysis | Business | News | Rapid TV News
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In a hugely bullish forecast for the prospects of an industry that has certainly seen its ups and downs, leading analyst MoffettNathanson is predicting that the ratio of US ad spending to GDP will hit levels not seen since the dot.com boom.
Tubi streamreport 20Jan2020
The analyst believes that fundamentally innovation in digital marketing will continue to strengthen and connect all parts of the marketing funnel to the benefit of the digital industry’s leading players. It added that such an improvement in targeting, measurability and efficiency will benefit companies of all size and attract below-the-line budgets to the digital marketplace.

The analyst predicts that the US advertising industry will witness the creation of a new framework with four distinct parts; a top funnel focused on brand building and dominated by TV; a mid-top sector including AVOD services such as Tubi (pictured) and YouTube; a middle funnel defined by social media hyper targeted push messaging; a low end dominated by Google search and Amazon.

Of the specific predictions, MoffettNathanson observed that AVOD’s long term opportunity may be stronger than anticipated if the players can implement effective targeting and develop performance-based advertising capabilities. The study calculates that he AVOD sector will likely account for 35% of total mid-top funnel revenues of $19 billion by the end of 2021. The sector is set for steady growth to be worth $53 billion in 2025 with YouTube accounting for two-thirds of this figure.