Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - China

China

Ad spending in the Traditional TV Advertising market in China is forecasted to reach US$11.03bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.22%, leading to a projected market volume of US$11.15bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in China is estimated to be US$12.49 in 2024.
The number of users in the Traditional TV Advertising market in China is expected to reach 898.2m users by 2029.
Traditional TV advertising in China is experiencing a shift towards digital platforms due to changing consumer behaviors and increased internet penetration.

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 China has been experiencing significant growth and development in recent years.

Customer preferences: Chinese consumers still have a strong preference for traditional television, with a large portion of the population relying on it as their primary source of entertainment and information. This preference for traditional TV has contributed to the continued demand for TV advertising in China. Additionally, advertisers recognize the reach and impact of television advertising in reaching a wide audience, particularly in rural areas where internet and digital media penetration may be lower.

Trends in the market: One of the key trends in the Traditional TV Advertising market in China is the shift towards targeted advertising. Advertisers are increasingly using data analytics and audience segmentation to deliver more personalized and relevant advertisements to viewers. This trend is driven by advancements in technology and the availability of data, allowing advertisers to better understand their target audience and optimize their advertising campaigns. Another trend in the market is the integration of online and offline advertising. With the rise of digital media and the internet, advertisers are leveraging the synergies between traditional TV advertising and online advertising to maximize their reach and impact. This integration allows advertisers to engage with consumers across multiple platforms and channels, creating a more holistic and comprehensive advertising strategy.

Local special circumstances: China has a vast and diverse population, with different regions and provinces having their own unique characteristics and preferences. This diversity presents both opportunities and challenges for advertisers in the Traditional TV Advertising market. Advertisers need to tailor their advertising campaigns to cater to the specific needs and preferences of different regions, taking into account cultural, linguistic, and socio-economic factors.

Underlying macroeconomic factors: China's strong economic growth and rising disposable incomes have contributed to the growth of the Traditional TV Advertising market. As more Chinese consumers have the means to purchase television sets and access to cable or satellite TV services, the audience size for traditional TV advertising continues to expand. Additionally, the government's efforts to promote domestic consumption and stimulate economic growth have also had a positive impact on the advertising industry as a whole. In conclusion, the Traditional TV Advertising market in China is experiencing growth and development due to customer preferences for traditional television, the trend towards targeted advertising, the integration of online and offline advertising, local special circumstances, and underlying macroeconomic factors. Advertisers in China need to adapt to these trends and leverage the unique characteristics of different regions to effectively reach their target audience and maximize the impact of their advertising campaigns.

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.