Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Costa Rica

Costa Rica

Costa Rica's Traditional TV Advertising market is anticipated to see ad spending reach US$57.50m in 2024.
The sector is forecasted to experience an annual growth rate (CAGR 2024-2029) of 0.92%, leading to a projected market volume of US$60.20m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$12.96 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Costa Rica is expected to reach 4.6m users.
Costa Rica's Traditional TV Advertising market is experiencing a shift towards digital platforms to target tech-savvy consumers, impacting ad spend strategies.

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 Costa Rica has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Costa Rican consumers still have a strong preference for traditional TV advertising, despite the rise of digital platforms. This can be attributed to several factors. First, traditional TV advertising offers a wide reach and allows advertisers to target a broad audience. Second, many Costa Ricans still rely on traditional TV as their primary source of entertainment and information. Finally, traditional TV advertising provides a sense of familiarity and trust that digital platforms may not yet have fully established.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Costa Rica is the increasing use of targeted advertising. Advertisers are leveraging data and analytics to better understand their audience and deliver personalized messages. This trend is driven by the growing competition in the market and the need for advertisers to stand out from the crowd. By targeting specific demographics and tailoring their messages accordingly, advertisers can increase the effectiveness of their campaigns and maximize their return on investment. Another trend in the market is the integration of digital technologies into traditional TV advertising. Advertisers are increasingly using interactive features, such as QR codes and clickable ads, to engage viewers and drive them to take action. This integration of digital and traditional advertising channels allows advertisers to create more immersive and interactive experiences for their audience, increasing the effectiveness of their campaigns.

Local special circumstances: Costa Rica has a unique market landscape that contributes to the development of the Traditional TV Advertising market. The country has a high level of internet penetration and access to digital platforms, but traditional TV remains a dominant force in the media landscape. This can be attributed to factors such as the limited availability of high-speed internet in some areas and the cultural preference for traditional media. Additionally, the Costa Rican government has implemented regulations that promote the use of traditional TV advertising, further driving its growth in the market.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Costa Rica can also be attributed to underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has increased consumer purchasing power and led to higher advertising budgets. Additionally, Costa Rica has a stable political environment and a growing middle class, which further supports the growth of the advertising industry. In conclusion, the Traditional TV Advertising market in Costa Rica is developing due to customer preferences for traditional media, the integration of digital technologies, local special circumstances, and underlying macroeconomic factors. Advertisers in Costa Rica are leveraging these trends and circumstances to create effective and engaging campaigns that resonate with 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.