Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - G7

Ad spending in the Traditional TV Advertising market in G7 is forecasted to reach US$91.15bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of -2.46%, leading to a projected market volume of US$80.46bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$146.90 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in G7 is estimated to reach 630.5m users.
In the United States, Traditional TV Advertising remains a dominant force despite digital competition, leveraging its reach and impact on consumer behavior.

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 G7 has been experiencing significant changes and developments in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all played a role in shaping the landscape of this industry.

Customer preferences: In the G7 countries, customer preferences for TV advertising have been shifting in response to technological advancements and changing media consumption habits. With the rise of digital streaming platforms and on-demand services, viewers have more control over what they watch and when they watch it. This has led to a decline in traditional TV viewership and a decrease in the effectiveness of traditional TV advertising. As a result, advertisers have had to adapt their strategies to reach audiences through other channels and platforms.

Trends in the market: One of the key trends in the Traditional TV Advertising market in G7 is the shift towards targeted and personalized advertising. Advertisers are increasingly leveraging data and technology to deliver more relevant and tailored ads to specific audiences. This allows them to maximize the impact of their advertising campaigns and improve ROI. Additionally, there has been a rise in programmatic advertising, which automates the buying and selling of ad inventory. This trend has enabled advertisers to reach their target audiences more efficiently and effectively. Another trend in the market is the integration of digital and traditional TV advertising. Advertisers are recognizing the importance of a multi-channel approach and are combining TV advertising with digital strategies to create a more cohesive and comprehensive advertising campaign. This integration allows for greater reach and engagement, as it leverages the strengths of both traditional TV and digital platforms.

Local special circumstances: Each G7 country has its own unique set of circumstances that impact the Traditional TV Advertising market. For example, in the United States, the market is highly competitive, with a wide range of TV networks and channels to choose from. This has led to increased fragmentation of audiences and a need for more targeted advertising. In Japan, on the other hand, there is a strong preference for traditional TV advertising, with viewership remaining high and advertisers continuing to invest in this medium.

Underlying macroeconomic factors: The Traditional TV Advertising market in G7 is also influenced by underlying macroeconomic factors. Economic growth, consumer spending power, and market stability all play a role in shaping the advertising landscape. For example, during times of economic downturn, advertisers may reduce their advertising budgets, leading to a decline in TV advertising. Conversely, in periods of economic growth, advertisers may increase their spending on TV advertising to capitalize on the expanding consumer market. In conclusion, the Traditional TV Advertising market in G7 is evolving in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting their strategies to reach audiences through targeted and personalized advertising, integrating digital and traditional TV platforms, and leveraging data and technology. Understanding these dynamics is crucial for advertisers and marketers looking to navigate the ever-changing landscape of the Traditional TV Advertising market in G7.

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.