Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Central & Western Europe

Central & Western Europe

Ad spending in the Traditional TV Advertising market in Central & Western Europe is forecasted to reach US$18.34bn in 2024.
The sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of -1.02%, leading to a projected market volume of US$17.42bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$66.32 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is anticipated to reach 280.1m users.
In Central & Western Europe, 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

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Region comparison

Currency

Analyst Opinion

The Traditional TV Advertising market in Central & Western Europe is experiencing significant growth and development.

Customer preferences: Consumers in Central & Western Europe still have a strong preference for traditional TV advertising. This is due to the fact that TV remains one of the most popular and widely used forms of media in the region. People enjoy watching their favorite shows and are accustomed to seeing advertisements during commercial breaks. Additionally, traditional TV advertising allows for a wide reach and the ability to target specific demographics.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Central & Western Europe is the increasing demand for programmatic advertising. Programmatic advertising allows advertisers to target specific audiences and deliver personalized messages. This is particularly appealing to brands who want to reach a specific target market and maximize the impact of their advertising campaigns. Another trend in the market is the rise of digital TV advertising. With the increasing popularity of streaming services and on-demand content, advertisers are recognizing the importance of reaching consumers through digital channels. Digital TV advertising offers the ability to target specific audiences and track the effectiveness of campaigns in real-time. This trend is expected to continue as more people cut the cord and rely on digital platforms for their entertainment needs.

Local special circumstances: Central & Western Europe is a diverse region with different languages, cultures, and preferences. This presents a unique challenge for advertisers who need to tailor their messages to specific markets. Advertisers must take into account cultural nuances and adapt their campaigns accordingly in order to resonate with local audiences. Additionally, regulations surrounding advertising vary from country to country, further adding to the complexity of the market.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Central & Western Europe can be attributed to several underlying macroeconomic factors. Firstly, the region has a stable and developed economy, which provides a favorable environment for advertisers to invest in TV advertising. Secondly, Central & Western Europe has a large population with high levels of disposable income, making it an attractive market for advertisers. Finally, the region has a strong media industry with a wide range of TV channels and production companies, providing ample opportunities for advertisers to reach their target audience.

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.