Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Luxembourg

Luxembourg

In Luxembourg, ad spending in the Traditional TV Advertising market is forecasted to reach US$50.73m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of -0.88%, leading to a projected market volume of US$48.53m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$66.46 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is anticipated to reach 0.8m users.
Luxembourg's Traditional TV Advertising market shows resilience, with high-end brands leveraging its affluent audience for targeted campaigns.

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

Luxembourg, a small country in Western Europe, has seen significant developments in its Traditional TV Advertising market in recent years. Customer preferences in Luxembourg have played a crucial role in shaping the market. Despite the rise of digital advertising, many consumers in the country still prefer to watch traditional television, leading to a steady demand for TV advertising. This is partly due to the fact that television remains a popular form of entertainment, with a wide range of channels and programs available. Additionally, the older demographic in Luxembourg tends to have a stronger preference for traditional TV, further driving the demand for TV advertising. Trends in the market reflect the changing landscape of television consumption in Luxembourg. While overall TV viewership has remained relatively stable, there has been a shift towards digital platforms. Many viewers now watch their favorite shows and movies through streaming services or on-demand platforms, which has led to a decline in traditional TV advertising. However, advertisers have adapted to this trend by incorporating digital elements into their TV campaigns, such as interactive ads or cross-platform promotions. This has allowed them to reach a wider audience and engage viewers in new ways. Local special circumstances in Luxembourg have also influenced the development of the Traditional TV Advertising market. The country's small size and high population density make it an attractive market for advertisers. With a concentrated audience, advertisers can target their campaigns more effectively and reach a larger percentage of the population. Additionally, Luxembourg's multicultural society presents unique opportunities for advertisers to tailor their messages to specific ethnic or linguistic groups. Underlying macroeconomic factors have also contributed to the growth of the Traditional TV Advertising market in Luxembourg. The country has a strong and stable economy, with a high GDP per capita and a high standard of living. This has created a favorable environment for businesses and advertisers, who have the financial means to invest in TV advertising. Furthermore, Luxembourg's status as a financial hub and home to many multinational corporations has attracted international advertisers, further boosting the market. In conclusion, the Traditional TV Advertising market in Luxembourg has experienced significant developments driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Despite the rise of digital advertising, traditional television remains popular among consumers in Luxembourg, leading to a steady demand for TV advertising. Advertisers have adapted to the changing landscape by incorporating digital elements into their campaigns, while also taking advantage of Luxembourg's small size and multicultural society. The country's strong economy and international presence have further contributed to the growth of the market.

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.