Traditional TV Advertising - NAFTA

Ad spending in the Traditional TV Advertising market in NAFTA is forecasted to reach US$63.93bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of -3.46%, leading to a projected market volume of US$51.75bn by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market in NAFTA is projected to be US$178.20 in 2024.
The number of users in the Traditional TV Advertising market in NAFTA is expected to reach 0.0users by 2030.
In the NAFTA region, the shift towards digital platforms is reshaping Traditional TV Advertising strategies among major players in the market.

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 NAFTA is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the NAFTA region still value traditional TV advertising as a reliable and effective way to reach a wide audience. Television remains the most popular medium for entertainment and information, and viewers continue to tune in to their favorite shows and channels. Advertisers recognize this and continue to invest in TV advertising to ensure their messages reach a large and diverse audience.

Trends in the market: One of the key trends in the Traditional TV Advertising market in NAFTA is the shift towards targeted advertising. Advertisers are increasingly using data and analytics to identify their target audience and deliver personalized ads. This allows them to maximize the impact of their advertising campaigns and ensure they are reaching the right people at the right time. Another trend in the market is the integration of digital technologies with traditional TV advertising. Advertisers are leveraging digital platforms to enhance the reach and effectiveness of their TV ads. They are using social media, online streaming services, and interactive features to engage with viewers and create a more immersive advertising experience.

Local special circumstances: The Traditional TV Advertising market in NAFTA is influenced by the unique characteristics of each country in the region. For example, in the United States, the market is highly competitive and fragmented, with a wide range of channels and networks catering to different audience segments. This creates opportunities for advertisers to target specific demographics and niche markets. In Canada, the market is more concentrated, with a few major broadcasters dominating the industry. This presents both challenges and opportunities for advertisers, as they need to negotiate with these broadcasters to secure airtime for their ads. In Mexico, the market is characterized by a growing middle class and increasing urbanization. This has led to a rise in consumer spending and a greater demand for products and services. Advertisers are capitalizing on this by investing in TV advertising to reach the expanding consumer base.

Underlying macroeconomic factors: The growth and development of the Traditional TV Advertising market in NAFTA are also influenced by underlying macroeconomic factors. Economic stability, consumer confidence, and GDP growth are key drivers of advertising spending. When the economy is strong and consumers have more disposable income, advertisers are more likely to invest in TV advertising to promote their products and services. Furthermore, technological advancements and infrastructure development play a crucial role in the growth of the market. The availability of high-speed internet, digital TV services, and advanced broadcasting technologies enable advertisers to deliver their messages more effectively and efficiently. In conclusion, the Traditional TV Advertising market in NAFTA is experiencing growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are recognizing the value of TV advertising in reaching a wide audience and are leveraging targeted advertising and digital technologies to enhance the effectiveness of their campaigns. The unique characteristics of each country in the region, along with macroeconomic factors, further contribute to the growth of the market.

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.