Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Ethiopia

Ethiopia

Ad spending in the Traditional TV Advertising market in Ethiopia is forecasted to reach US$32.60m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.68%, leading to a projected market volume of US$37.20m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is expected to be US$2.29 in 2024.
The number of users in the Traditional TV Advertising market is projected to be 16.8m users by 2029.
Ethiopia is experiencing a shift towards digital platforms, challenging the dominance of Traditional TV Advertising in the country's 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.

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Analyst Opinion

Traditional TV Advertising in Ethiopia is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in Ethiopia are shifting towards traditional TV advertising due to its wide reach and effectiveness in reaching a large audience. Despite the rise of digital platforms, traditional TV remains a popular choice for advertisers as it allows them to target a broad demographic and engage viewers with compelling visual content. Additionally, traditional TV advertising offers a sense of credibility and trust that digital advertising may lack, especially in a market where internet penetration is still relatively low. Trends in the Ethiopian TV advertising market reflect the country's economic growth and increasing consumer spending power. As the middle class expands and disposable income rises, more companies are investing in TV advertising to promote their products and services. This has led to an increase in the number of TV advertising campaigns and a greater variety of advertisements being aired. Advertisers are also adopting innovative strategies to capture viewers' attention, such as sponsoring popular TV shows or incorporating local cultural elements into their commercials. Local special circumstances in Ethiopia, such as the dominance of state-owned media and limited competition, have contributed to the growth of traditional TV advertising. The Ethiopian Broadcasting Corporation (EBC) is the main TV broadcaster in the country, with a wide viewership and reach. This allows advertisers to target a large audience through a single platform, making traditional TV advertising a cost-effective option. Additionally, the limited number of private TV stations in Ethiopia means that advertisers have fewer options for reaching their target audience, further driving the demand for traditional TV advertising. Underlying macroeconomic factors also play a role in the development of the traditional TV advertising market in Ethiopia. The country's stable economic growth and increasing consumer spending power have created a favorable environment for advertisers. As more companies enter the market and competition intensifies, traditional TV advertising becomes a crucial tool for businesses to differentiate themselves and capture market share. Furthermore, the government's focus on infrastructure development, including the expansion of electricity access and the digitalization of broadcasting, is expected to further boost the traditional TV advertising market in Ethiopia. In conclusion, the traditional TV advertising market in Ethiopia is experiencing growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As the country's economy continues to grow and consumer spending power increases, traditional TV advertising remains a popular and effective choice for advertisers to reach a wide audience and promote their products and services.

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.