Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Australia & Oceania

Australia & Oceania

Ad spending in the Traditional TV Advertising market in Australia & Oceania is forecasted to reach US$2.66bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of 0.08%, leading to a projected market volume of US$2.67bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$88.93 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is anticipated to reach 31.4m users.
Australia's Traditional TV Advertising market is adapting to digital trends, emphasizing targeted ads to reach specific audiences effectively.

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.

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Analyst Opinion

The Traditional TV Advertising market in Australia & Oceania has been experiencing significant developments and trends in recent years.

Customer preferences: In Australia & Oceania, customer preferences for Traditional TV Advertising have been shifting towards more targeted and personalized content. With the rise of streaming services and on-demand platforms, viewers are increasingly looking for tailored advertisements that cater to their specific interests and needs. This has led to a decline in the effectiveness of traditional mass-market TV advertising, as viewers are now able to skip or fast-forward through commercials. As a result, advertisers are adapting their strategies to incorporate more targeted advertising techniques, such as programmatic advertising and addressable TV.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Australia & Oceania is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of TV ad inventory, enabling them to target specific audiences and optimize their campaigns in real-time. This trend is driven by the growing availability of data and advanced analytics, which provide advertisers with valuable insights into viewer behavior and preferences. By leveraging programmatic advertising, advertisers can deliver more relevant and personalized ads to their target audience, ultimately increasing the effectiveness of their campaigns. Another trend in the market is the rise of addressable TV advertising. Addressable TV allows advertisers to deliver targeted ads to specific households or individuals based on their demographic, geographic, or behavioral characteristics. This enables advertisers to reach their desired audience more effectively, while also providing viewers with more relevant and engaging content. With the increasing adoption of smart TVs and connected devices, addressable TV advertising is becoming more accessible and scalable in Australia & Oceania.

Local special circumstances: Australia & Oceania is a diverse region with unique cultural and linguistic characteristics. This diversity presents both opportunities and challenges for advertisers in the Traditional TV Advertising market. Advertisers need to consider the cultural nuances and preferences of different countries and communities within the region to ensure their campaigns resonate with the target audience. Additionally, the vast geographic spread of the region poses logistical challenges in terms of delivering and measuring the effectiveness of TV advertising campaigns. Advertisers need to develop localized strategies and partnerships to overcome these challenges and maximize the impact of their campaigns.

Underlying macroeconomic factors: The Traditional TV Advertising market in Australia & Oceania is influenced by various macroeconomic factors, such as economic growth, consumer spending, and technological advancements. A strong and stable economy contributes to higher consumer spending and advertising budgets, which in turn drives demand for TV advertising. Technological advancements, such as the proliferation of smart TVs and connected devices, provide new opportunities for advertisers to reach their target audience and deliver more engaging content. However, economic downturns or fluctuations in consumer confidence can have a negative impact on the Traditional TV Advertising market, as advertisers may reduce their advertising budgets or shift their focus to more cost-effective digital advertising channels. In conclusion, the Traditional TV Advertising market in Australia & Oceania is evolving to meet the changing preferences of customers. Advertisers are adopting more targeted and personalized advertising techniques, such as programmatic advertising and addressable TV, to deliver relevant and engaging content to their target audience. However, they need to consider the diverse cultural and linguistic characteristics of the region, as well as the logistical challenges posed by its vast geography. Additionally, macroeconomic factors, such as economic growth and technological advancements, play a significant role in shaping the market dynamics.

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.