Traditional TV Advertising - Mexico

In Mexico, ad spending in the Traditional TV Advertising market is forecasted to reach US$2.46bn in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2030) of 1.29%, leading to a projected market volume of US$2.65bn by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$21.80 in 2024.
By 2030, the number of users in the Traditional TV Advertising market is anticipated to reach 0.0users.
Amidst the rise of digital platforms, Mexico's Traditional TV Advertising market is adapting by integrating online strategies to reach a broader audience.

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.

Moving image formats broadcasted over traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered over Internet Protocol networks (IPTV)
Spending for pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators

Online TV advertising (e.g., ad spending for TV viewed online, delivered by traditional broadcasters via their websites)

The Traditional TV Advertising market in Mexico is experiencing significant growth and development.

Customer preferences: Mexican consumers still have a strong preference for traditional TV advertising. Despite the rise of digital platforms and streaming services, traditional TV remains a popular choice for entertainment and information. This preference is driven by factors such as the wide availability of free-to-air channels and the cultural importance of television in Mexican households.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Mexico is the increasing demand for targeted advertising. Advertisers are recognizing the importance of reaching specific audiences and are investing in data-driven strategies to deliver personalized ads. This trend is supported by advancements in technology and data analytics, which enable advertisers to segment their target audience based on demographics, interests, and viewing habits. As a result, advertisers can optimize their ad spend and maximize the effectiveness of their campaigns. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are leveraging interactive features and second-screen experiences to engage viewers and enhance the effectiveness of their campaigns. This includes features such as QR codes, social media integration, and interactive ads that allow viewers to interact with the content in real-time. By incorporating digital elements, advertisers can create a more immersive and interactive advertising experience, capturing the attention of viewers and driving brand engagement.

Local special circumstances: Mexico has a large and diverse population, with different regions and demographics having unique preferences and viewing habits. Advertisers need to take these local special circumstances into account when planning their TV advertising campaigns. For example, rural areas may have limited access to cable or satellite TV, making free-to-air channels more important in these regions. Additionally, cultural and linguistic factors should be considered to ensure that advertisements resonate with the target audience. Advertisers may need to adapt their messaging and creative content to effectively reach different segments of the Mexican population.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Mexico is also influenced by macroeconomic factors. The country's stable economic growth and increasing disposable income have contributed to higher consumer spending, including on advertising. Advertisers are capitalizing on this growth by investing in TV advertising to reach a wide audience and drive brand awareness. Additionally, Mexico's strong broadcasting infrastructure and extensive network of TV stations make it an attractive market for advertisers. The availability of diverse programming and channels allows advertisers to target specific demographics and regions effectively. As a result, the Traditional TV Advertising market in Mexico continues to thrive and evolve to meet the changing needs and preferences of consumers.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Television changed the world; now technology is changing television. After a pandemic-related decrease in ad spending in 2020, global television ad spending has since returned to growth over the first half of the 2020s but has not succeeded in going back to its pre-pandemic figures. At the same time, TV’s share of global ad spending has been decreasing year-after-year. TV’s global deceleration is mostly attributable to a slowdown in linear TV investments, while spending on digital TV is showing no signs of slowing down. Connected TV (CTV) ad revenue worldwide is expected to almost double between 2022 and 2028, as more and more viewers ditch linear TV in favor of devices connected to the internet.