Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Latvia

Latvia

Ad spending in the Traditional TV Advertising market in Latvia is forecasted to reach US$42.73m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.66%, leading to a projected market volume of US$44.15m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Latvia is projected to be US$27.01 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Latvia is expected to reach 1.6m users.
Latvia's Traditional TV Advertising market is seeing a shift towards digital platforms as viewers embrace on-demand and streaming services.

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 market in Latvia has been experiencing significant growth in recent years. Customer preferences have shifted towards digital platforms, leading to a decline in traditional TV viewership. However, despite this shift, traditional TV advertising remains a popular and effective marketing tool in the country.

Customer preferences: In line with global trends, customer preferences in Latvia have been shifting towards digital platforms for entertainment and information. This has resulted in a decline in traditional TV viewership, as consumers increasingly turn to streaming services and online content. However, traditional TV advertising still holds value for advertisers, as it allows for broad reach and the ability to target specific demographics.

Trends in the market: One of the key trends in the traditional TV advertising market in Latvia is the increasing use of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences based on their viewing habits and demographics. This targeted approach helps advertisers maximize the impact of their campaigns and improve return on investment. Another trend in the market is the integration of traditional TV advertising with digital platforms. Advertisers are increasingly using social media and online video platforms to extend the reach of their TV campaigns. This integration allows for a more comprehensive and cohesive marketing strategy, reaching consumers across multiple channels.

Local special circumstances: Latvia is a small market with a population of around 2 million people. This presents both opportunities and challenges for advertisers. On one hand, the small market size allows for more targeted advertising campaigns, as advertisers can focus on specific demographic segments. On the other hand, the limited audience size may restrict the reach of campaigns and make it more difficult to achieve broad brand awareness.

Underlying macroeconomic factors: The Latvian economy has been growing steadily in recent years, which has contributed to the growth of the traditional TV advertising market. A strong economy generally leads to increased consumer spending and business investment, which in turn drives demand for advertising. Additionally, Latvia's membership in the European Union provides access to a larger market and opportunities for cross-border advertising campaigns. In conclusion, while the traditional TV advertising market in Latvia is facing challenges due to shifting customer preferences towards digital platforms, it continues to be a valuable marketing tool. The integration of traditional TV advertising with digital platforms and the use of programmatic advertising are key trends in the market. The small market size and strong economy of Latvia present both opportunities and challenges for advertisers.

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.