Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Americas

Americas

Ad spending in the Traditional TV Advertising market in Americas is forecasted to reach US$71.95bn in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -2.82%, leading to a projected market volume of US$62.35bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Americas is estimated to be US$93.70 in 2024.
The number of users in the Traditional TV Advertising market in Americas is expected to reach 0.8bn users by 2029.
In the Americas, the shift towards digital platforms is challenging the dominance of traditional TV advertising in the advertising market.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional TV Advertising market in Americas is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Americas have traditionally been avid consumers of television content, and this preference for traditional TV viewing has translated into a strong demand for TV advertising. Despite the rise of digital platforms and streaming services, many customers still value the experience of watching television and the advertisements that accompany it. In addition, TV advertising offers a wide reach and the ability to target specific demographics, which appeals to advertisers looking to maximize their reach and impact.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Americas is the increasing use of data and analytics to optimize advertising campaigns. Advertisers are leveraging data to better understand their target audience, personalize their messaging, and measure the effectiveness of their campaigns. This data-driven approach allows advertisers to make more informed decisions and improve the return on their advertising investments. Another trend in the market is the integration of traditional TV advertising with digital platforms. Advertisers are increasingly using digital channels to complement their TV campaigns, creating a multi-channel approach that maximizes reach and engagement. This integration allows advertisers to leverage the strengths of both traditional TV and digital platforms, reaching customers across different touchpoints and devices.

Local special circumstances: The Traditional TV Advertising market in Americas is diverse, with different countries and regions having their own unique characteristics and preferences. For example, in the United States, the market is highly competitive and fragmented, with a large number of TV networks and channels vying for advertising dollars. This competition drives innovation and creativity in advertising campaigns, as advertisers strive to stand out in a crowded market. In Latin America, on the other hand, there is a growing middle class and an increasing number of households with access to television. This presents a significant opportunity for advertisers to reach a larger audience and promote their products and services.

Underlying macroeconomic factors: The growth and development of the Traditional TV Advertising market in Americas is also influenced by underlying macroeconomic factors. Economic stability, consumer confidence, and disposable income levels play a crucial role in determining advertising spending. When the economy is strong and consumers have more disposable income, advertisers are more willing to invest in TV advertising to promote their products and services. Additionally, political and regulatory factors can impact the advertising landscape. Changes in regulations or government policies can affect the availability and cost of advertising slots, as well as the content and messaging of TV advertisements. Advertisers need to navigate these factors and adapt their strategies accordingly. In conclusion, the Traditional TV Advertising market in Americas is experiencing growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are leveraging data and analytics, integrating traditional TV advertising with digital platforms, and adapting their strategies to the unique characteristics of different countries and regions. The market is dynamic and competitive, driven by consumer demand and economic factors.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.