Traditional TV Advertising - Nordics

Ad spending in the Traditional TV Advertising market in the Nordics is forecasted to reach US$1.54bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of -1.59%, leading to a projected market volume of US$1.40bn by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market in the Nordics is projected to be US$56.74 in 2024.
By 2030, the number of users in the Traditional TV Advertising market in the Nordics is anticipated to reach 0.0users.
Traditional TV advertising in the Nordics is facing a decline as digital platforms gain traction among consumers for targeted marketing strategies.

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 Nordics has been experiencing significant developments and trends in recent years. Customer preferences in the region have shifted towards digital platforms, resulting in a decline in traditional TV viewership. This change in consumer behavior can be attributed to the increasing availability and convenience of online streaming services. With the rise of platforms such as Netflix and Amazon Prime Video, viewers now have the flexibility to watch their favorite shows and movies at their own convenience, without being tied to traditional TV schedules. Additionally, the younger generation, in particular, is more inclined towards digital platforms due to their preference for on-demand content and the ability to watch on multiple devices. As a result of these changing customer preferences, the Traditional TV Advertising market in Nordics has been experiencing a decline. Advertisers are shifting their focus towards digital advertising platforms, which offer more targeted and measurable advertising opportunities. Digital advertising allows advertisers to reach specific audiences based on their demographics, interests, and online behavior, providing them with a more effective way to reach their target market. Despite the decline in traditional TV advertising, there are still some trends in the market that are worth noting. One such trend is the emergence of programmatic TV advertising. Programmatic TV advertising allows advertisers to automate the buying and selling of TV ad inventory, making the process more efficient and cost-effective. This trend is driven by the increasing adoption of data-driven advertising strategies, which enable advertisers to target their ads more effectively and optimize their campaign performance. Another trend in the Traditional TV Advertising market in Nordics is the integration of online and offline advertising. Advertisers are increasingly leveraging the power of both traditional TV and digital platforms to reach their target audience. This integrated approach allows advertisers to maximize their reach and engagement by combining the broad reach of traditional TV with the targeting capabilities of digital advertising. Local special circumstances in the Nordics, such as the high internet penetration rate and tech-savvy population, have contributed to the development of the Traditional TV Advertising market. The region has a strong digital infrastructure and a high level of internet connectivity, making it easier for consumers to access online streaming services. Additionally, the Nordics have a tech-savvy population that is quick to adopt new technologies and platforms, further driving the shift towards digital advertising. Underlying macroeconomic factors, such as the overall economic growth and stability in the region, have also played a role in the development of the Traditional TV Advertising market in Nordics. A stable economy provides a favorable environment for businesses to invest in advertising and marketing activities. Furthermore, the high disposable income and purchasing power of consumers in the region contribute to the attractiveness of the advertising market. In conclusion, the Traditional TV Advertising market in Nordics is experiencing significant developments and trends. Customer preferences have shifted towards digital platforms, resulting in a decline in traditional TV viewership and advertising. However, there are still some trends in the market, such as programmatic TV advertising and the integration of online and offline advertising, that are shaping the industry. Local special circumstances, including the high internet penetration rate and tech-savvy population, have contributed to the development of the market. Underlying macroeconomic factors, such as economic growth and consumer purchasing power, also play a role in the market's development.

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.