Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - EU-27

EU-27

Ad spending in the Traditional TV Advertising market in EU-27 is forecasted to reach US$20.14bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -0.60%, leading to a projected market volume of US$19.54bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in EU-27 is projected to be US$53.01 in 2024.
The number of users in the Traditional TV Advertising market in EU-27 is expected to reach 380.6m users by 2029.
The EU-27 is experiencing a shift towards digital advertising, leading to a decline in the demand for traditional TV advertising slots.

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 EU-27 is experiencing significant developments and trends driven by various factors.

Customer preferences: TV advertising continues to be a popular choice among customers in EU-27. Despite the rise of digital advertising, traditional TV advertising has managed to retain its appeal due to its wide reach and ability to engage audiences. Customers appreciate the immersive experience that TV ads provide, allowing them to connect with brands on a deeper level. Additionally, customers often find TV ads to be more trustworthy and credible compared to digital ads, which can be easily ignored or blocked.

Trends in the market: One of the prominent trends in the Traditional TV Advertising market in EU-27 is the shift towards targeted advertising. Advertisers are increasingly leveraging data analytics and audience segmentation techniques to deliver personalized ads to specific viewer demographics. This trend is driven by the desire to maximize the impact of advertising campaigns and ensure that ads are relevant to the target audience. By tailoring ads to specific viewer preferences, advertisers can increase the effectiveness of their campaigns and achieve higher ROI. Another trend in the market is the integration of digital technologies into TV advertising. Advertisers are exploring innovative ways to combine traditional TV ads with interactive elements, such as QR codes, augmented reality, and social media integration. This allows viewers to engage with the ads in real-time and provides advertisers with valuable data on viewer behavior and preferences. By incorporating digital elements, TV advertising becomes more interactive and engaging, enhancing the overall customer experience.

Local special circumstances: The Traditional TV Advertising market in EU-27 is characterized by a diverse range of languages, cultures, and preferences across different countries. Advertisers need to consider these local special circumstances when creating and distributing TV ads. Localization is crucial to ensure that ads resonate with the target audience and effectively communicate the brand message. Advertisers often adapt their ads to suit the local language, cultural references, and humor, making them more relatable and impactful.

Underlying macroeconomic factors: The Traditional TV Advertising market in EU-27 is influenced by macroeconomic factors such as GDP growth, consumer spending, and market competition. During periods of economic growth, advertisers tend to increase their TV advertising budgets to capitalize on the positive market sentiment and consumer purchasing power. Conversely, during economic downturns, advertisers may reduce their TV ad spend to cut costs. Market competition also plays a role in shaping the TV advertising landscape, as advertisers strive to differentiate themselves and capture market share through compelling and memorable TV ads. In conclusion, the Traditional TV Advertising market in EU-27 is evolving to meet the changing needs and preferences of customers. The shift towards targeted advertising and the integration of digital technologies are driving the market forward. Advertisers must also consider local special circumstances and macroeconomic factors to effectively reach their target audience and achieve their advertising goals.

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.