Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Colombia

Colombia

Ad spending in the Traditional TV Advertising market in Colombia is forecasted to reach US$599.40m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.73%, leading to a projected market volume of US$621.60m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Colombia is projected to be US$13.14 in 2024.
The number of users in the Traditional TV Advertising market in Colombia is expected to reach 47.5m users by 2029.
Colombia's traditional TV advertising market is experiencing a shift towards digital platforms to reach the tech-savvy audience more 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 Colombia is experiencing significant growth and development.

Customer preferences: Colombian consumers still have a strong preference for traditional TV advertising. They enjoy watching their favorite shows and are accustomed to the advertisements that are aired during commercial breaks. Additionally, many households in Colombia do not have access to internet or streaming services, making traditional TV the primary source of entertainment for a large portion of the population.

Trends in the market: One major trend in the Traditional TV Advertising market in Colombia is the increasing investment from local businesses. As the economy continues to grow, more companies are looking to promote their products and services through TV advertisements. This has led to an increase in the number of commercials being aired and has created new opportunities for advertising agencies and production companies. Another trend in the market is the rise of targeted advertising. With the availability of data analytics and audience measurement tools, advertisers are able to target specific demographics and tailor their advertisements accordingly. This allows them to maximize the impact of their campaigns and reach their desired audience more effectively.

Local special circumstances: Colombia has a diverse population with different cultural backgrounds and preferences. This diversity is reflected in the TV programming and advertising content. Advertisers need to take into account the cultural nuances and sensitivities of the Colombian audience to ensure that their advertisements resonate with the viewers and do not offend or alienate any particular group.

Underlying macroeconomic factors: The growing economy in Colombia is a key driver of the development in the Traditional TV Advertising market. As the country becomes more prosperous, consumers have more disposable income to spend on products and services. This creates a demand for advertising as businesses seek to capture the attention of these consumers and promote their offerings. Furthermore, the stability of the political and regulatory environment in Colombia has also contributed to the growth of the Traditional TV Advertising market. A stable business environment encourages investment and allows companies to plan their advertising strategies with confidence. In conclusion, the Traditional TV Advertising market in Colombia is thriving due to customer preferences for traditional TV, increasing investment from local businesses, the rise of targeted advertising, the diverse cultural landscape, and the underlying macroeconomic factors of a growing economy and stable business environment.

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.