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The TV ad spending market consists of traditional TV, connected TV/OTT, digital and social media platforms that are used for marketing and advertising campaigns by various brands and companies. Traditional TV remains the primary platform for TV ad spending, though connected TV/OTT platforms like YouTube, Hulu and Netflix are gaining popularity among consumers and advertisers alike. These digital platforms allow for targeted and personalized ads based on consumer preferences and interests.
The global TV Ad Spending Market is estimated to be valued at US$ 130.22 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing integration of TV ad spending with digital platforms is expected to drive the market growth over the forecast period. As mentioned in the heading, digital platforms like connected TV/OTT provide opportunities for targeted and personalized ads. This allows advertisers to understand consumer behavior and interests at a granular level. Moreover, these digital mediums have massive reach among internet users worldwide. It is estimated that over 4 billion people use internet globally. This wide consumer base attracts advertisers to utilize digital and social media platforms for ensuring higher visibility and engagement with their campaigns.
Additionally, the ability to collect consumer data and measure campaign effectiveness also encourages advertisers to increase their spending on digital platforms. Parameters like impressions, clicks, video views etc can help advertisers ascertain which creatives or messages are resonating better with target audiences. This data-driven approach further aids in optimizing ad strategy and content for higher returns on investment.
Segment Analysis
TV Ad spending market can be broadly segmented into linear TV and connected TV. Linear TV continues to dominate accounting for over 70% market share owing to higher viewership and reach. However, connected TV segment is growing at a faster pace driven by shift of viewers especially young generations towards streaming platforms and video on demand services. Within connected TV, subscription video on demand platforms like Netflix, Amazon prime video etc are the fastest growing sub segment.
Key players operating in the TV Ad spending market are Procter & Gamble, Amazon, Comcast, AT&T, General Motors, Verizon Communications, L’Oréal, The Walt Disney Company, Ford Motor Company, Samsung Electronics, Unilever, Toyota Motor Corporation, NBCUniversal (owned by Comcast), Alphabet Inc. (Google), Johnson & Johnson. Major players are focusing on expanding their digital platforms and connected TV offerings to cater growing non-linear viewership.
Regional Analysis: North America currently dominates the market however Asia Pacific is expected to witness fastest growth led by countries like India and China.
PEST Analysis
Political: Regulatory push towards transparency in online political ads and curbing fake news has increased compliance requirements for digital platforms.
Economic: Global economic slowdown post COVID-19 pandemic negatively impacted overall advertising spending including TV ads in short term. However, recovery is underway in major markets.
Social: Changing viewer habits with growing preference for streaming content on demand has accelerated shift from linear to connected TV viewing. Younger demographics are leading this change.
Technological: proliferation of streaming devices, smart TVs and high speed internet connectivity is facilitating seamless connected TV experience and fueling growth of streaming platforms. This has boosted non-linear or connected TV ad spending.
Key Takeaways
The global TV Ad Spending Market is expected to witness high growth over the forecast period driven by economic recovery in major markets and shift towards digital platforms.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
