US media spending jumped in 2016 to $8 billion, according to a new report from media buying research firm Selective Media.
That’s up from $6 billion in 2015, and nearly double the $4.3 billion spent in 2015.
The US media market is the third largest in the world behind China and Brazil, with $8.7 trillion in annual revenues.
While spending by news publishers has grown dramatically over the past few years, the report said that overall media spending fell for the first time since 2012.
While the report doesn’t include a breakdown by source, Selective said the rise in media spending was largely driven by digital ad spending.
The report found that, in 2016, online media advertising accounted for almost 70 percent of US media ad spending, while mobile ad spending had risen to 20 percent.
For the year, digital ad spend was up 2 percent to $2.9 billion.
Selective added that the growing importance of digital advertising was a result of the fact that consumers have become more engaged with media consumption, and the rise of digital video.
“The proliferation of the Internet and mobile video platforms has allowed media to evolve into a more complex, interactive and participatory experience, creating new avenues for content creation,” the report’s authors wrote.
According to Selective, online and mobile advertising grew to more than $1.4 trillion last year, representing roughly 20 percent of total ad spending and a significant increase from 2010.
The market is still dominated by print advertising, which had a $6.6 trillion share in 2016.
Digital advertising represented 17 percent of ad spending in 2016 but was down from 18 percent in 2015 and 16 percent in 2014.
The rise of ad-supported digital video is expected to help drive the US media industry’s growth.
According to the National Association of Broadcasters, the US is projected to see a rise in online video advertising revenue of 15.7 percent to 23.9 percent in 2020, which is nearly double what it was in 2015 as the industry has grown from $831 million in 2015 to more $1 billion in 2020.
The group estimates that digital video advertising will reach $5.1 billion by 2020, up from the $3.8 billion recorded in 2015 in part due to the explosion of online video platforms.