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The TV Ad spending market involves spending on commercial advertisements aired on television. This includes spots aired during live sports events, programs, news broadcasts and other TV shows. Major products advertised on television include consumer packaged goods, automobiles, entertainment, financial services etc. TV remains one of the most effective platforms for mass reach and brand building due to its immersive experience.
The TV Ad spending Market is estimated to be valued at US$130.22 billion in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing TV Viewership – Despite increased popularity of streaming services and online videos, television viewing continues to be a daily activity for most households. The time spent watching live TV and content on streaming devices has increased over the years, driving up opportunities for TV ad placements.
Targeted Advertising – Advancements in data analytics, artificial intelligence and personalized ad technologies have enabled advertisers to hyper-target their campaigns to specific consumer demographics and behaviors. This has increased the effectiveness of TV ads, prompting more spending.
Segment Analysis
The global TV ad spending market is dominated by the television segment. Television accounts for over 60% of the total TV ad spending market share due to its widespread reach and availability across various platforms like cable TV, DTH, IPTV etc. Television offers viewership of large audience bases and allows advertisers to target mass consumers easily and effectively.
PEST Analysis
Political: The regulations around television and digital advertising are evolving. Some jurisdictions have imposed restrictions around targeting of ads and data privacy which impacts market players.
Economic: The global economy recovering post pandemic is fueling growth in discretionary spending and advertising budgets. TV continues to be an important medium for many brands due to its mass reach.
Social: Viewing patterns and preferences are evolving due to growing digital media consumption. Younger demographics are spending less time watching traditional TV.
Technological: Advancements like integrated TV ads, addressable TV and automatic content recognition (ACR) are enhancing targeting and improving ROI for advertisers. Many providers are also offering ad insertion into streaming media.
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 programmatic TV capabilities and rolling out advanced targeting options across CTV/OTT to capture shifting consumer preferences. Partnerships between platforms, MVPDs and advertisers are also on the rise.
Regional analysis indicates that Asia Pacific region will dominate the market during the forecast period. Countries like India and China offer massive scale and are witnessing a boom in subscription/pay-TV with digitization. North America will remain one of the major markets led by the U.S. while Europe is projected to grow at a steady pace.
Key Takeaways
The global TV Ad spending Market size is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period of 2023 to 2030, driven by increasing penetration of pay-TV connections and shift towards newer digital platforms. The market size is estimated to reach US$ 220 Bn by 2030 from US$ 130.22 Bn in 2023.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
