Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Europe

Europe

Ad spending in the Traditional TV Advertising market in Europe is forecasted to reach US$29.53bn in 2024.
The market is anticipated to experience a compound annual growth rate (CAGR 2024-2029) of -0.61%, leading to an estimated market size of US$28.64bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Europe is projected to be US$43.63 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Europe is predicted to reach 0.7bn users.
Amid the rise of digital advertising, France's traditional TV advertising market is experiencing a gradual shift towards more targeted and data-driven 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 Europe has experienced significant growth in recent years, driven by changing customer preferences and the increasing popularity of digital platforms.

Customer preferences: In today's digital age, customers are increasingly turning to online streaming services and on-demand content, which has led to a decline in traditional TV viewership. This shift in consumer behavior has prompted advertisers to adapt their strategies and invest more in digital advertising channels. However, traditional TV advertising still holds a strong appeal for certain demographics, particularly older audiences who may be less inclined to adopt new technologies. These viewers continue to rely on traditional TV for their entertainment needs, making it an attractive platform for advertisers looking to reach this specific target market.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Europe is the rise of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences based on data-driven insights, enabling them to deliver more personalized and relevant ads to viewers. This technology has revolutionized the way TV ads are bought and sold, making the process more efficient and cost-effective. As a result, programmatic TV advertising has gained traction in Europe, with advertisers increasingly adopting this approach to reach their target audiences. Another trend in the market is the integration of traditional TV advertising with digital platforms. Many broadcasters now offer online streaming services and on-demand content, allowing viewers to watch their favorite shows anytime, anywhere. This convergence of traditional TV and digital platforms has created new opportunities for advertisers to reach consumers across multiple channels. Advertisers can now leverage the reach and engagement of traditional TV while also tapping into the targeting capabilities and interactivity of digital platforms.

Local special circumstances: The Traditional TV Advertising market in Europe is diverse, with each country having its own unique characteristics and preferences. For example, in countries like Germany and France, traditional TV remains a dominant force in the media landscape, attracting a large viewership and advertising spend. On the other hand, in countries like the United Kingdom and Sweden, digital platforms have gained significant traction, posing a challenge to traditional TV advertising.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Europe is also influenced by underlying macroeconomic factors. Economic stability, consumer confidence, and disposable income levels play a crucial role in driving advertising spend. When the economy is strong, businesses are more willing to invest in advertising to promote their products and services. Conversely, during economic downturns, advertisers may reduce their spending, impacting the overall market. In conclusion, the Traditional TV Advertising market in Europe is evolving to meet the changing preferences of consumers. While digital platforms are gaining popularity, traditional TV advertising still holds appeal for certain demographics. The rise of programmatic advertising and the integration of traditional TV with digital platforms are key trends shaping the market. However, each country in Europe has its own unique characteristics and preferences, which influence the development of the market. Additionally, underlying macroeconomic factors play a significant role in driving advertising spend in the region.

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.