Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - GCC

Ad spending in the Traditional TV Advertising market in GCC is forecasted to reach US$315.90m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.46%, leading to a projected market volume of US$339.70m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$6.43 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is expected to reach 52.4m users.
Traditional TV advertising in the GCC is seeing a resurgence due to its ability to reach a wide audience amidst digital marketing saturation.

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 GCC is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the GCC region have shifted towards traditional TV advertising as a result of its wide reach and ability to engage with a large audience. Despite the rise of digital media, many consumers in the GCC still rely on traditional TV as their primary source of entertainment and information. This preference for TV has led advertisers to invest heavily in traditional TV advertising in order to reach their target audience effectively. Trends in the market show that advertisers are increasingly leveraging the power of traditional TV advertising in the GCC. Advertisers are developing creative and engaging TV commercials that capture the attention of viewers and leave a lasting impression. Additionally, there is a growing trend of targeted advertising, where advertisers tailor their TV commercials to specific demographics or geographic regions. This allows advertisers to maximize the impact of their advertising campaigns and increase their return on investment. Local special circumstances in the GCC also contribute to the growth of the Traditional TV Advertising market. The GCC region has a high concentration of expatriate populations, with people from various countries residing and working in the region. This diversity presents a unique opportunity for advertisers to reach a wide range of audiences through traditional TV advertising. Advertisers can create commercials that resonate with different cultural backgrounds and languages, ensuring their message is effectively communicated to the target audience. Underlying macroeconomic factors further drive the growth of the Traditional TV Advertising market in the GCC. The GCC region has a strong and stable economy, with high levels of disposable income among its population. This provides advertisers with a lucrative market to promote their products and services through traditional TV advertising. Additionally, the GCC region is known for its luxury and tourism industries, attracting high-spending consumers. Advertisers in these industries can effectively target their audience through traditional TV advertising, capitalizing on the region's economic prosperity. In conclusion, the Traditional TV Advertising market in the GCC is growing due to customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are leveraging the power of traditional TV advertising to reach a wide audience in the region and maximize their return on investment. With the continued popularity of traditional TV and the strong economic conditions in the GCC, the market is expected to further expand in the coming years.

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.