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<ul class="summary-list"><li>CAGR stands for compound annual growth rate, and it is a measure of an investment's average past performance over a long period of time.</li><li>CAGR doesn't predict how an investment will perform in the future.</li><li>CAGR has its limitations and doesn't necessarily reflect an investment's actual performance.</li></ul>By their very nature, markets fluctuate constantly, making it difficult to know which investments are worth sinking your money into. While there's no way to reliably predict what's going to happen in any given market, there are some indicators that can give you an idea of what opportunities might be worth exploring. Compounded annual growth rate (CAGR) is one such measure. Here is a closer look at what CAGR is and what it means in terms of investments. <h2>What is compound annual growth rate (CAGR)? </h2>CAGR is a formula that calculates how the value of an investment has changed over the course of a specific time period, assuming all earnings have been reinvested and no deductions have been made. This calculation allows investors to look at how much an investment has gained or lost over one or more years as a way to determine overall performance. It's a useful tool for comparing multiple investments to see what might be worth buying into, whether it's securities, property, business, or anything else of value. <h2>How CAGR works </h2>CAGR is calculated by looking at the initial and final values of an investment and a period of time over which to evaluate performance. This formula is relatively simple and assumes that nothing has been deducted from the investment, such as a sale of shares. It also assumes that any value earned - through interest or dividends - has been reinvested and compounded into the investment. "The CAGR measure can be used in any industry," explains Daniel Garza, Chartered Financial Analyst and Senior Research Analyst with <a href="https://intercontinentalwealthadvisors.com/" target="_blank" rel="nofollow noopener sponsored">Intercontinental Wealth Advisors</a>. "However, it can be used in the investment world to complement other widely used measures, such as time-weighted return. This is because some assets are not publicly traded and it's harder to know their value at a specific time every month/year to evaluate growth or rate of return."Garza says that CAGR is useful when applied to assets that don't have publicly available data to determine performance, such as property or physical assets. "This is because having an initial value for a physical asset and a final value for the same asset, regardless of the time frame, allows you to calculate it," he says. "There is no need to constantly know the value of this asset to get to CAGR." <h3>CAGR formula</h3>To calculate CAGR, use the following formula: <div type="image" title="Formula graphic for how to calculate Compound annual growth rate (CAGR)" height="707" width="1668" msid="84905532" hostid="261"></div><ul><li>Divide the final value of an investment by its starting value. </li><li>Apply the exponent of 1/N to that quotient. The value of N will be the timeframe you're evaluating, such as a number of years. </li><li>Finally, subtract 1 from the value you get from applying the exponent. </li></ul>Let's see how this works when you put it all together. To keep things simple, we are going to determine the CAGR for an investment that has grown from $100 to $108 in value over 5 years. Your formula would look like this when you plug in all of the values:CAGR = (108/100)/^⅕ -1 = .015511 or 1.5511% This tells us that on average, the investment gained 1.5511% in value each year during the selected five-year period. Some years may have seen more growth and others less. But it smooths out to this rate when you look at the timeframe as a whole. Quick tip: There are many CAGR calculators available online but you can also use Microsoft Excel. The program's <a href="https://support.microsoft.com/en-us/office/xirr-function-de1242ec-6477-445b-b11b-a303ad9adc9d" target="_blank" rel="nofollow noopener sponsored">XIRR function</a> will calculate CAGR, or you can input the following formula into a spreadsheet cell: =((V2/V1))^(1/t)-1. This can save a lot of time and get you a quick calculation, taking some of the legwork out of your research.<h2>How investors use CAGR </h2>One of the most common reasons investors use CAGR is to compare investments. Though you're not seeing the actual gains and losses from year to year, CAGR shows you how an investment has historically performed. You can use this information to learn about one or more investments, see how they measure up to one another, and make informed decisions about where you want to put your money. You can also use CAGR to track business performance as a result of measures a company takes, such as policy changes or new products introduced to market. It can also give you an idea of a business' strengths and weaknesses. For example, a CAGR that shows a steady decline over a number of years might indicate that internal or external issues are impacting profitability and the business is struggling to overcome them. <h2>Disadvantages of CAGR </h2><ul><li>CAGR doesn't tell you anything about an investment's risk. It's simply a measure of past performance. It doesn't account for varying degrees of risk that all investments are vulnerable to. If you want to determine the risk-return reward of an investment, you can use other calculations, such as Sharpe's Ratio and Treynor's Ratios, both of which adjust for risks that CAGR doesn't. </li><li>CAGR is a "smoothed" value, meaning it doesn't show the history of highs and lows an investment has seen. Growth is assumed to be constant throughout the given timeline, even though that's not necessarily the case. </li><li>CAGR can't predict how an investment will perform in the future. You can look at past performance and make a guess as to whether or not an investment is likely to continue that pattern of growth. But it is in no way a guarantee, no matter how steady growth has been in the past. In fact, Garza says the shorter the time frame used in your analysis, the less likely it will be that the expected CAGR performance will be repeated. </li><li>Representation of data can be limited when you're talking about CAGR because you're only looking at performance during a specific time frame. There can be a lack of context that skews interpretation of CAGR. For example, if you're looking at stock that was hit hard during a recession and experienced rapid growth in the years recovering from a significant loss, the CAGR is going to seem overly high. That rate of increase will most likely slow as the company levels out. </li></ul><h2>CAGR vs. internal rate of return (IRR)</h2>CAGR is a simplified, overall look at past performance. The internal rate of return (IRR) calculation takes more factors into consideration than starting and ending values over time. It looks at inflows and outflows of cash and multiple time periods. If you have added to or taken out money from the investment, using IRR is a better measure of return rate. <table style="border-collapse: collapse; width: 100%;" border="1"><tbody><tr><td style="width: 50%;">Compound annual growth rate</td><td style="width: 50%;">Internal rate of return</td></tr><tr><td style="width: 50%;"><ul><li>Only looks at starting and ending values over one time period</li><li>Assumes any money earned is reinvested/compounded</li><li>Assumes growth rate is consistent and no withdrawals have been made</li></ul></td><td style="width: 50%;"><ul><li>Looks at multiple time periods and transactions</li><li>Accounts for ongoing fluctuations in market value</li><li>Accounts for money withdrawn from and added to the investment</li></ul></td></tr></tbody></table><h2>The financial takeaway</h2>Looking at the CAGR of an investment can be useful in evaluating past performance. Because it assumes that growth is consistent from year to year within the evaluation period, it may not accurately reflect the volatility an investment experienced. It's a smoothed average that doesn't tell the whole story but can be used to quickly compare how different investments stand up to each other. You'll find CAGR applied to all kinds of industries and to just about anything of value. Make sure to fully understand the context of how CAGR is calculated so you can make an informed opinion about what it means for your goals.And remember that while this average uses data based on events that have already taken place, it is not necessarily an accurate predictor of how an investment will perform moving forward. View it as one of many data points in your larger research about opportunities you're interested in <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword> in.<a data-type="60ec7aa704eb592fca2b3d8b">A company's earnings per share can help you gauge its profitability - here's how you calculate it</a><a data-type="60d60d694dde6162896da014">How to buy a stock: A step-by-step guide to help you get started investing</a><a data-type="60f31936fdabbb1b270e9087">What to know about speculation: When investors buy high-risk assets with the expectation of significant returns</a><a data-type="6075ad4e8fdef855a23b65b6">How market value can help you determine the true worth of company or asset</a>

What is compound annual growth rate?

<ul><li>PwC's latest report reveals that India’s Entertainment and Media industry is expected to grow at 10.75% CAGR to reach Rs 412,656 Cr by 2025.</li><li>One of the fastest-growing industries in India, video games and esports revenue reached Rs 11250 Cr in 2020, and is set to expand to INR 24213 Cr in 2025, at 16.5% CAGR.</li></ul>India’s Entertainment &amp; Media industry is expected to reach INR 412656 Cr by 2025 at 10.75% CAGR. These figures come from PwC's Global Entertainment &amp; Media Outlook 2021-2025, the 22nd annual analysis and forecast of E&amp;M spending by consumers and advertisers across 53 territories. Rajib Basu, Partner &amp; Leader – Entertainment &amp; Media, <keyword id="148915" type="COMPANY" weightage="20" keywordseo="PWC-India">PwC India</keyword> said, "Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience. As we predicted last year, India is forecasted to be the fastest growing entertainment and media market globally in terms of consumer and advertising revenue. Technological advancement and deepening of internet access will continue to influence the way Indians consume content. Our Outlook shows that the demand for great, localised content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next 5 years.” Key findings for India in this year’s Outlook include: <cmsannotation type="cmsannotation" annotationid="TV advertising:" text="TV advertising:">TV advertising: </cmsannotation>TV advertising has continued to expand in 2020, despite COVID, reaching INR 35015 Cr. India is the fourth-largest market globally after the US, China and Japan. Further expansion at a 7.6% CAGR will take TV ad revenues to the level of INR 50586 Cr in 2025. Multichannel advertising will account for nearly 92% of the total TV advertising market in 2025. Online TV advertising will make modest inroads in the forecast period, with broadband penetration remaining extremely low at 7.3% of households. <cmsannotation type="cmsannotation" annotationid="Internet advertising:" text="Internet advertising:">Internet advertising: </cmsannotation>India is the fastest-growing Internet Advertising market in the world at a CAGR of 18.8% during 2020-2025. Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4% of the total internet advertising revenue of INR 30471 Cr by 2025. In 2020 revenue from mobile internet advertising in India was INR 7331 Cr and will rise to INR 22350 Cr in 2025 – increasing at a 25.4% CAGR. This makes India the fastest-growing mobile ad market in the world, reflecting the potential for growth, with over half the population yet to take up a mobile Internet subscription in 2020. <cmsannotation type="cmsannotation" annotationid="Newspapers &amp; consumer magazines:" text="Newspapers &amp; consumer magazines:">Newspapers &amp; consumer magazines: </cmsannotation>In 2020 the Indian newspaper &amp; consumer magazines market was worth INR 26299 Cr and is likely to have a CAGR of 1.82% upto 2025. In 2020, print advertising revenue fell by 12.0% and print circulation revenue was down by 4.0%, mainly due to the pandemic. Digital magazine circulation and advertising revenue is set to increase between 2020 and 2025 from just INR 231 Cr to INR 358 Cr at a CAGR of 9.5%. <cmsannotation type="cmsannotation" annotationid="Cinema:" text="Cinema:">Cinema:</cmsannotation> Box-office revenues plunged by 75% year-on-year in a COVID-hit 2020 to INR 2652 Cr. Local producers turned to digital streaming to make up the shortfall. Box-office revenue is expected to recover and grow at a CAGR of 39.3% grossing up INR 13857 Cr by the end of 2025. The overall segment comprising box-office and cinema advertising is predicted to grow back to pre-covid level by mid of 2023. <cmsannotation type="cmsannotation" annotationid="Music, Radio &amp; Podcast:" text="Music, Radio &amp; Podcast:">Music, Radio &amp; Podcast: </cmsannotation>India’s total music, radio and podcasts market revenues dropped in 2020 to INR 4626 Cr, as the pandemic stripped almost INR 522 Cr from the country’s live music sector. Digital channels account for almost 90% of the recorded music market. And, like elsewhere, streaming is the most-popular category. Ad-supported streaming is the dominant digital product in India, generating INR 1088 Cr in 2020, almost twice the sum reported from subscription revenue (INR 581 Cr). The growth for the overall segment is predicted at 19.1% CAGR 2020-25 to reach INR 11026 Cr. <cmsannotation type="cmsannotation" annotationid="Video games &amp; esports:" text="Video games &amp; esports:">Video games &amp; esports: </cmsannotation>The gaming market in India continues to enjoy exceptional growth and shows enormous potential. Video games and esports revenue reached INR 11250 Cr in 2020 and is set to expand to INR 24213 Cr in 2025, at 16.5% CAGR. India’s gaming market is dominated by the social/casual category, which accounted for 77% of all video games and esports revenue in 2020. India’s esports market is small but as awareness grows and, crucially, the mobile esports offering becomes stronger, this sector will see rapid expansion, at a 31.6% CAGR over the forecast period. Other factors impacting the global E&amp;M sector: <cmsannotation type="cmsannotation" annotationid="Generational shift: Youth will be served" text="Generational shift: Youth will be served">Generational shift: Youth will be served</cmsannotation> Not surprisingly, many younger consumers have little awareness of, or interest in, traditional media. On the other hand, media platforms designed for young consumers or that enable lightly-produced, authentic content have boomed. Gaming is central to the youth movement and is becoming a significant driver of data consumption – in fact it is on pace to be the fastest-growing content category in that regard, accounting for 6.1% of total data consumption globally by 2025, up from 4.7% in 2020. <cmsannotation type="cmsannotation" annotationid="Regulatory shifts: pushback on platforms" text="Regulatory shifts: pushback on platforms">Regulatory shifts: pushback on platforms</cmsannotation> The regulatory scrutiny of big tech is yet another shift impacting E&amp;M. Antitrust pressures have increased with calls to break up big tech platforms along with government proposals for new media regulations. Changes to current regulatory regimes are inevitable and it’s vital that E&amp;M players incorporate regulatory risks in their planning processes. Werner Ballhaus, Global Entertainment &amp; Media Industry Leader Partner, PwC Germany, concluded: “Even in the areas that offer the most compelling topline growth – like video streaming – the nature of competition is likely to change dramatically over the coming years. And all the while, the social, political, and regulatory context in which all companies operate continues to evolve in unpredictable ways. All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, will not be the most effective posture going forward.”

India is the fastest-growing Internet Advertising market in the world at a CAGR of 18.8% during 2020-2025: PwC Report

New Delhi, There is a surge in hiring for cybersecurity-related roles including data, automation, security, compliance, risk, and relationships in the second quarter of 2023, reflecting a 34 per cent compound annual growth rate (CAGR) since 2020, according to a report on Monday. The job analytics database of GlobalData, a data and analytics company, showed a notable shift in the pharmaceutical industry as companies are increasingly prioritising the adoption of emerging technologies and stringent compliance measures to safeguard against cyber threats and data breaches. An analysis of Company Filing Analytics Database revealed that cybersecurity dominated pharma industry discussions during Q2 2023 as well amid the push for digital transformation. "The growing digital engagement, coupled with the rising occurrence of data breaches, has prompted pharma companies to place a heightened emphasis on roles geared towards minimising enterprise risks. These roles aim to advocate privacy measures and develop cybersecurity strategies that enhance the comprehension of privacy-related risks linked to emerging technologies," said Misa Singh, Business Fundamentals Analyst at GlobalData, in a statement. In August, the global pharmaceutical industry experienced a 19 per cent rise in new job postings related to cybersecurity in Q2 2023 compared with the previous quarter, the report said. "In an era where data is the lifeblood of the pharmaceutical industry, the shift towards embracing technology and fortifying cybersecurity measures is not just a strategic move but a critical imperative. As we navigate this transformative landscape, these cybersecurity-related roles serve as the guardians of our digital future, ensuring privacy, compliance, and resilience in the face of evolving challenges," Singh added.

Cybersecurity jobs in pharma sector up at 34% CAGR since 2020: Report

Greater Noida, Feb 6 () Although the Indian auto sector is facing growth challenges, it has potential to grow at a CAGR of 5 per cent through 2026, said automotive business intelligence company JATO Dynamics. The new entrants will account for almost 15 per cent of the market or little over half a million units, it said here in its report at Auto Expo here. "We expect the Indian industry to grow at a CAGR of 5 per cent through 2026. The new entrants will account for almost 15 per cent of the market, or little over half a million units," it said. "The passenger car sales growth will be driven by new model introductions in the SUV and hatchbacks segment," it said. The SUV segment currently accounts for 26 per cent of total car sales in India. "The arrival of small, cheaper and more modern SUVs is boosting this segment, volumes of SUVs under 4 metres grew by 8 per cent to 421,488 units," it said. The mini hatch or entry segment has been witnessing a decline as consumers are looking at feature equipped cars, bigger size premium hatchbacks and this has resulted in the decline of mini hatch or entry segment. "The Indian light vehicle market is expected to grow at a compounded annual rate of 5 per cent through 2026," said JATO Dynamics India President Ravi Bhatia. He further added: "The market size will grow from 3.4 million units in 2019 to 4.8 million by that time." The Light vehicle sales crossed the 3.4 million mark in 2019. India is the fifth largest automobile market, behind Germany in 4th position and Japan in 3rd. "Since 2019 we have seen a fresh wave of new OEMs entering India or announcing their entry plans and we expect to see some of these at the Auto Expo 2020. This indicates the attractiveness of Indian market and its growth potential," he added. KRH MKJ

India auto industry to grow at CAGR of 5% through 2026

<keyword id="10844139" type="UNKNOWN" weightage="20" keywordseo="global-consumer-spending">Global consumer spending</keyword> on premium apps, in-app purchases, and subscriptions across <keyword id="6354427" type="COMPANY" weightage="20" keywordseo="apple">Apple</keyword>'s <keyword id="115504" type="COMPANY" weightage="20" keywordseo="App-Store">App Store</keyword> and <keyword id="963171" type="PERSON" weightage="20" keywordseo="Google-Play">Google Play</keyword> will reach $270 billion annually by 2025, nearly 2.5 times what consumers spent in 2020 as <keyword id="8763838" type="UNKNOWN" weightage="20" keywordseo="covid-19">Covid-19</keyword> accelerated mobile trends. According to data provided by <keyword id="235499" type="COMPANY" weightage="20" keywordseo="APP">app</keyword> analytics firm Sensor Tower, Covid-19 supercharged global consumer spending in mobile apps during 2020, which climbed 30 per cent year-over-year to $111 billion. While year over year growth in spending will return to pre-pandemic levels over the next five years, gross revenue on both app stores will continue to climb each year with a 19.5 per cent compound annual growth rate (CAGR) to reach $270 billion in 2025. The App Store will see a CAGR of 21 per cent through 2025, reaching $185 billion annually. Consumer spending on Google Play is projected to experience a 17 per cent CAGR, hitting $85 billion annually within the next five years. Consumer spending in the US will grow at a slightly <keyword id="10460341" type="UNKNOWN" weightage="20" keywordseo="slower-pace">slower pace</keyword> than the global trend, climbing to $74 billion in 2025 at a CAGR of 17.7 per cent. The US App Store will experience a CAGR of 19.6 per cent and Google Play will climb 14 per cent to $51 billion and $23 billion, respectively. First-time downloads achieved their highest growth since at least 2016 in 2020, surging 24 per cent y/y to 143 billion. Although the pace of installs will slow as markets begin recovering from the pandemic, both the App Store and Google Play will continue experiencing stable y/y growth. By 2025, non-game apps will widen their lead even more, reaching $107 billion while mobile games will reach $78 billion. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/if-you-want-to-work-from-home-these-are-some-of-the-hottest-freelancing-jobs-in-high-demand/articleshow/81228585.cms">If you want to work from home, these are some of the hottest freelancing jobs in high demand</a> <a href="https://www.businessinsider.in/business/auto/news/owning-an-electric-two-wheeler-is-slightly-cheaper-cheaper-than-petrol-and-diesel-at-a-time-when-fuel-prices-are-at-a-record-high/articleshow/81253308.cms">Owning an electric two-wheeler is slightly cheaper cheaper than petrol and diesel at a time when fuel prices are at a record high</a> <a href="https://www.businessinsider.in/india/news/india-now-allows-you-to-avail-a-discount-on-flight-ticket-if-you-are-not-carrying-a-check-in-baggage/articleshow/81225977.cms">India now allows you to avail a discount on flight ticket if you are not carrying a check-in baggage</a>

Global consumer spending on apps to reach $270 billion annually by 2025

Outperforming other commercial vehicle segments in the country, the small commercial vehicle (SCV) industry in India witnessed a sale of 4,32,000 units, contributing a whopping 60% to the overall commercial vehicle industry in 2014. 
	 

	According to a study by Roland Berger Strategy Consultants, a global consultancy firm, in the next six years the segment is pegged to grow at 13% CAGR till FY 2020, thus constituting 80% of the total commercial vehicle industry in India. 
	 

	“OEMs in the SCV segment need to focus on creating the demand for SCVs by developing newer applications. They also need to understand their customers’ needs and liaise with government authorities in order to further promote SCV Passengers” said Dr. Wilfried Aulbur, managing partner at Roland Berger Strategy Consultants India. 
	 

	The Fair Game 
	 

	Currently, SCV segment is the fastest growing segment in the industry. The segment that came into existence in 2005 in India substantially grew at 30% CAGR in 2010-2012 but registered 1% decline in the last two years. It should be noted that the commercial vehicle industry shrunk by 11% CAGR due to economic downturn in the country. 
	 

	In the SCV segment, SCV Cargo vehicles category continues to remain the biggest segment and will account for over 80% of the total market in the next six years. The large pick-ups with a capacity of 2-3.5 ton constitute 54% of the SCV Cargo segment and have been growing rapidly. 
	 

	However, the passenger vehicle segment in SCV has been facing tough competition from three wheelers. “It faces tough competition from 3 wheelers that account for more than 85% of the passenger segment. Also, competition from Multi Purpose Vehicles (MPVs) and Sports Utility Vehicles (SUVs) for customers looking for comfort whereas soft top vehicles are more in demand for shared taxi applications. Over the last year, the segment has suffered extremely high delinquency rates,” stated the report. 
	 

	The Big Boys Tata Motors and Mahindra &amp; Mahindra (<keyword id="46869" type="CITY" weightage="20" keywordseo="MM">M&amp;M</keyword>) dominate the SCV category. While Tata Motors is the market leader through its sub 2T truck category and the SCV Passenger vehicles, <keyword id="46425" type="PERSON" weightage="20" keywordseo="Anand-Mahindra">Anand Mahindra</keyword>’s M&amp;M is expected to dominate the 2-3.5 ton category because of its stronghold in the pick-up segment. “Tata reinforced its dominance in the &lt;2T (less than 2 ton) category by creating the Zip segment positioned between ACE ((Tata’s mini truck) and the three wheelers segment. On the other hand, M&amp;M has also managed to attract ACE customers to higher tonnage Bolero Maxi Truck. <keyword id="6357085" type="PERSON" weightage="20" keywordseo="Ashok-Leyland">Ashok Leyland</keyword> is one of the late entrants but has been successful with Dost cornering 14% market share in the 2-3.5 Ton category”, the study revealed. In the 3 wheeler cargo segment, Piaggio continues to be the market leader with a market share of 52%. 
	 

	The Road Ahead 
	 

	According to the report, the SCV industry is expected to reach over 9 lakh units (in the next six years) growing at a CAGR of 13% over the next 6 years. The segment is expected to get back on the growth trajectory in the current fiscal year’s third quarter. 

	 
	Most of the Original Equipment Manufacturers (OEMs) have considerable investment plans for India. Isuzu India, a leading global OEM in India plans to invest Rs 3,000 crore in its upcoming plant in Andhra Pradesh, which has a capacity of churning out 1 lakh units annually. Ashok Leyland and Nissan joint venture has made an investment of Rs 2,500 crore out of which 50% has already been spent. The plant is expected to have a capacity of 1.5 lakh units. 

	 
	Similarly, Tata Motors has an overall investment target of Rs 1,500 crore for the current fiscal year. The investment is being made for new product development and not additional capacity. M&amp;M too will invest Rs 250 crore in its AP plant for its SCV and passenger vehicle segments. Eicher in a joint venture with Polaris India is also expected to make a similar investment for its own SCV models. 
	 

	The question however is: will these investments bring in returns? They definitely would, if manufacturers would offer exclusive and unique experience to the consumers. 
	 
	In Aulbur’s words, “The future of the SCV segment depends significantly on the rise of unique applications of the vehicles. The OEMs could augment the current demand by continuously developing newer applications and educating the customers on the benefits of using SCVs. New applications are being developed to expand the market prompting newer customers to buy SCVs. Poultry, milk and water distribution industries are some of the new applications that have been witnessed over the last few years.”

Small Commercial Vehicle Segment To Grow 13% CAGR In Next Six Years

<div class="KonaFilter image-container float_right click-to-enlarge"><div class="image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/559f23d2eab8ead550014807-960/adrevenuegrowth(us).png"></a>BI Intelligence</div></div>Dollars are increasingly flowing from traditional ads to digital, as strong growth in mobile, video, and social spending continue to change the face of the US media market.Over the next five years, marketers will especially embrace mobile. Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines.In this new report, BI Intelligence forecasts spending trends for the major digital ad formats - including search, display, and video - and mobile vs. desktop. We also examine trajectories for social ad spending and programmatic ad buying, which cut across digital formats. Finally, we look at how spending on traditional media formats will grow or contract over the next five years, as digital, and particularly mobile, rises. <a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">Access The Full Report And Data By Signing Up For A Risk-Free Trial &gt;&gt;</a> Here are some of the key takeaways from the report:<ul><li>Mobile will be the fastest-growing <keyword id="35666" type="COMPANY" weightage="60" keywordseo="advertising">advertising</keyword> channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.</li><li>Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9% through 2020. </li><li>Mobile search will overtake desktop search ad revenue by 2019. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline during the same period.</li><li>Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017. </li><li>Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.</li><li>The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year. </li><li>Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020. </li></ul>In full, the report:<ul><li>Forecasts ad revenue for emerging digital ad channels and formats like mobile, video, social and programmatic over the next five years</li><li>Explores why ad revenue is flowing from desktop to mobile</li><li>Examines the stagnation of traditional advertising channels like TV, magazines, and newspapers</li></ul>To access the <a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">full report from BI Intelligence, </a><a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">sign up for a 14-day </a><a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">trial here</a>. Members also gain access to new <a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">in-depth reports</a>, <a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">hundreds of charts and datasets</a>, as well as <a href="https://intelligence.businessinsider.com/the-us-digital-media-ad-spend-report-mobile-will-fuel-strong-growth-across-formats-as-desktop-and-traditional-spend-slow-2015-7?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdSpend-7-24-15&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;\=/g, '-');">daily newsletters</a> on the digital industry.

THE US DIGITAL MEDIA AD SPEND REPORT: Mobile will fuel strong growth across formats as desktop and traditional spend slow

<div class="KonaFilter image-container float_right click-to-enlarge"><div class="image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/559f23d2eab8ead550014807-960/adrevenuegrowth(us).png"></a>BI Intelligence</div></div>Dollars are increasingly flowing from traditional ads to digital, as strong growth in mobile, video, and social spending continue to change the face of the US media market.Over the next five years, marketers will especially embrace mobile. Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines.In this new report, BI Intelligence forecasts spending trends for the major digital ad formats - including search, display, and video - and mobile vs. desktop. We also examine trajectories for social ad spending and programmatic ad buying, which cut across digital formats. Finally, we look at how spending on traditional media formats will grow or contract over the next five years, as digital, and particularly mobile, rises. <a href="http://www.businessinsider.com/intelligence/research-store?IR=T#!/THE-US-DIGITAL-MEDIA-AD-SPEND-REPORT/p/52319339/category=11987293" target="_blank" onclick="this.href = this.protocol + '//' + this.hostname + this.pathname + this.search + '&amp;' + window.location.search.substr(1)+ this.hash;">Don't be left in the dark:</a> Stay ahead of the curve and access our full report to get everything you need to know about trends in US digital media ad spend. All in an easy to understand format with helpful graphs. <a href="http://www.businessinsider.com/intelligence/research-store?IR=T#!/THE-US-DIGITAL-MEDIA-AD-SPEND-REPORT/p/52319339/category=11987293" target="_blank" onclick="this.href = this.protocol + '//' + this.hostname + this.pathname + this.search + '&amp;' + window.location.search.substr(1)+ this.hash;">Get the report now &gt;&gt;</a>Here are some of the key takeaways from the report:<ul><li>Mobile will be the fastest-growing <keyword id="35666" type="COMPANY" weightage="60" keywordseo="advertising">advertising</keyword> channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.</li><li>Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9% through 2020. </li><li>Mobile search will overtake desktop search ad revenue by 2019. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline during the same period.</li><li>Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017. </li><li>Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.</li><li>The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year. </li><li>Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020. </li></ul>This is just a small piece of our comprehensive 23-page report. <a href="http://www.businessinsider.com/intelligence/research-store?IR=T#!/THE-US-DIGITAL-MEDIA-AD-SPEND-REPORT/p/52319339/category=11987293" target="_blank" onclick="this.href = this.protocol + '//' + this.hostname + this.pathname + this.search + '&amp;' + window.location.search.substr(1)+ this.hash;">Become an expert on the topic by accessing the full report now »</a>In full, the report:<ul><li>Forecasts ad revenue for emerging digital ad channels and formats like mobile, video, social and programmatic over the next five years</li><li>Explores why ad revenue is flowing from desktop to mobile</li><li>Examines the stagnation of traditional advertising channels like TV, magazines, and newspapers</li></ul><a href="http://www.businessinsider.com/intelligence/research-store?IR=T#!/THE-US-DIGITAL-MEDIA-AD-SPEND-REPORT/p/52319339/category=11987293" target="_blank" onclick="this.href = this.protocol + '//' + this.hostname + this.pathname + this.search + '&amp;' + window.location.search.substr(1)+ this.hash;">Don't wait to become a subject matter expert, get the full report now »</a>

FORECAST: Mobile is poised to drive ad spend growth across every digital format

<ul><li>As per the report, <keyword id="10150755" type="UNKNOWN" weightage="20" keywordseo="ott-sector">OTT sector</keyword> will directly benefit from the closure of cinemas, as some film studios choose to fast-track new releases to home video platforms. </li><li>OTT video in India is expected to see the largest gain and reach 5.2% by 2024, closely followed by <keyword id="441315" type="PERSON" weightage="20" keywordseo="internet-advertising">internet advertising</keyword>.</li></ul>According to PwC’s <a href="https://www.pwc.com/gx/en/industries/tmt/media/outlook.html">Global Entertainment &amp; Media Outlook 2020-2024</a>, the Indian E&amp;M industry’s long-term outlook remains robust as it is expected to grow at 10.1% CAGR to reach 55 billion USD by 2024. A K-shaped bifurcated recovery is on the horizon in which sectors like OTT, internet advertising, video/games/e-sports, and music and podcasts are expected to spearhead growth in the industry. Globally, Digital revenue is expected to contribute 60% to the total E&amp;M revenue by 2020, alone. In terms of individual segment market size as a percentage of total E&amp;M revenue, OTT video in India is expected to see the largest gain and reach 5.2% by 2024, closely followed by internet advertising. Segments like advertising and those dependent on physical locations are likely to be further impacted in a negative manner whereas digital E&amp;M spending will increasingly be regarded as a non-discretionary expense. While globally, newspapers and magazines are dropping the free online model and starting to ask readers to pay for quality content online, digital paywalls are yet to become commonplace in India. Furthermore, while India will remain the world’s biggest cinema market in admission terms, cinema revenue in India will contract at a -2.6% CAGR to total US$1.5bn over the next 5 years. Rajib Basu, Partner &amp; Leader – Entertainment &amp; Media, <keyword id="148915" type="COMPANY" weightage="20" keywordseo="PWC-India">PwC India</keyword> said, “ "We find ourselves in extraordinary times, and the pandemic has accelerated ongoing shifts in consumers’ behaviour, pulling forward digital disruption and reaching industry tipping points that wouldn’t otherwise have been reached in the next few years. Our research shows that India will be the fastest growing entertainment and media market globally in terms of pure consumer revenue.” Coming out of COVID-19, a K-shaped bifurcated recovery is expected in which some sectors rise while others fall. Over the next 5 years, the outlook remains highly positive for digital led segments such as OTT, Internet Advertising, Online Gaming and Music &amp; Podcasts that were perfectly positioned to meet consumers where they are in 2020 - predominantly at home and online. However, companies simultaneously have to prepare to meet them where they will be two years from now. They will need to build and maintain direct-to-consumer relationships, offer enough differentiation or scale to compete, and unlock greater value using the right technologies. This is a unique window of opportunity for E&amp;M businesses to transform and make themselves more resilient and relevant for the future.” added Rajib Basu. Top 4 segments to advance rapidly: OTT Video: India holds the most potential of any market in the world and its breakneck rate of growth will see total OTT video revenue overtake South Korea, Germany and Australia to jump to being the sixth-largest market in 2024. Subscription video on demand will be the prime driver of revenue, increasing at a 30.7% CAGR from US$708mn in 2019 to US$2.7bn in 2024. OTT video growth is coming from both inside and outside the home as Internet-connected devices proliferate as the new ‘at-home’ environment has led to the rise of direct-to-consumer apps, local ‘bite-sized’ entertainment platforms and user-generated content (UGC) formats Internet Advertising: India is now the sixth-largest Internet advertising market in the Asia Pacific region. Mobile will be the primary driver of revenue in the Internet advertising market revenue due to increased data affordability, new mobile-first formats, ability to measure, and strategic targeting. Nonetheless, from a global perspective, Internet advertising in India remains underdeveloped and has massive headroom for growth Video, <keyword id="10150756" type="COMPANY" weightage="20" keywordseo="games-e-sports">Games &amp; E-sports</keyword>: Gaming and e-sports are capitalizing on the need to bring live experiences into the home in more personalized and more engaging ways. E-sports represented less than 1% of overall market in 2019, but has become one of the fastest growing segments today with a projected 33% CAGR by 2024. However, despite surging growth and enormous potential, the sector tackles with the biggest challenge of low levels of app monetisation Music, Radio &amp; Podcasts: Podcast industry was already experiencing rapid growth prior to the COVID-19 outbreak. Fuelled by the uptake of music-streaming brands, the overall space is expected to grow at a 13.5% CAGR, to total revenue of nearly US$1.7bn in 2024. India will also see strong increase at a 30.4% CAGR in its monthly podcast listener base over the next five years, supported by entry of foreign players and original content on topics including news, society and culture As the industry navigates into the post-pandemic world, one can witness new opportunities for capturing growth: Players bolster subscription offerings - With consumers increasingly paying a monthly fee to access a library of entertainment content, such as films, music, content, fitness etc., <keyword id="126927" type="ORGANIZATION" weightage="20" keywordseo="Media-and-Entertainment">media and entertainment</keyword> industry players are catching on to the value of subscription based models to bring in business. Optimising revenue mix or pricing models to emerge more resilient and capture a bigger share of the wallet will be the focus Physical events look for digital alternatives - Another opportunity made more compelling by the pandemic is bringing live experiences into the home in a more personalized and engaging manner. Digital spaces—e-commerce platforms, virtual event spaces, gaming channels, podcasts—are evolving into powerful new platforms for marketing. Creating new content propositions will help realise new revenue streams OTT will thrive in 2020 as cinema and traditional TV degrow - OTT sector will directly benefit from the closure of cinemas, as some film studios choose to fast-track new releases to home video platforms. Since OTT platforms offer convenience and accessibility to consumers who are likely to hold on to their new habits of streaming ‘at home’, global SVOD revenue may overtake box office spend very soon Landmark acquisitions are out; buying growth and cash flows are in – As companies look for ways to navigate barriers, strategic investments &amp; alliances in search of scale and growth will be crucial to determine success in the E&amp;M media industry

India’s E&M industry expected to grow at a CAGR of 10.1% to reach US$55 billion by 2024: PwC India Report

Mobile ads will be the fastest-growing U.S. advertising medium in revenue terms, according to a new <a href="https://intelligence.businessinsider.com/revised-forecast-us-ad-revenue-by-format-2014-6?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdForecastChart-1&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">BI Intelligence forecast</a>. 
Overall, digital ad revenue will grow by a five-year compound annual growth rate (CAGR) of 12.9%, while non-digital ad revenue will decline at a compound annual rate of -5.7% between 2013 and 2018. 
<ul>
<li>Mobile will grow over 2X faster than any other ad medium in the next five years. Mobile ad revenue will reach $42 billion in the U.S. at the end of 2018, and see a five-year CAGR of 42.6%.</li>
<li>Online video ads will be the second-fastest growing format. Annual revenue from online video advertisements will top $5.6 billion by the end of 2018, and the format will see a five-year CAGR of 15.1%.</li>
<li>Revenue from more traditional mediums like TV and radio will decline during the same period. TV ad revenue will decrease by a five-year compound annual rate of -2.8%, and radio -16.8%. </li>
<li>Digital, including mobile, will surpass TV ad revenue in 2017. In that year, TV ads will be responsible for $66 billion in revenue while all digital formats will drive $72 billion. </li>
</ul>
<a href="https://intelligence.businessinsider.com/revised-forecast-us-ad-revenue-by-format-2014-6?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdForecastChart-1&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">BI Intelligence</a> is a subscription tech research service from Business Insider. For full access to all our reports, industry news coverage, and downloadable Excel charts, <a href="https://intelligence.businessinsider.com/revised-forecast-us-ad-revenue-by-format-2014-6?utm_source=House&amp;utm_medium=Edit&amp;utm_term=DM-AdForecastChart-1&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">sign up and get started.</a>
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