Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - North America

North America

Ad spending in the Traditional TV Advertising market in North America is forecasted to reach US$63.93bn in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -3.40%, leading to a projected market volume of US$53.78bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in North America is estimated to be US$178.20 in 2024.
The number of users in the Traditional TV Advertising market in North America is expected to reach 371.8m users by 2029.
In the United States, the shift towards digital platforms is challenging the dominance of Traditional TV Advertising in the North American market.

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

The Traditional TV Advertising market in North America is experiencing significant developments and trends in recent years.

Customer preferences: One of the main customer preferences in the Traditional TV Advertising market in North America is the desire for high-quality content. Consumers in this region have a strong appetite for engaging and entertaining television shows and commercials. They value well-produced and captivating advertisements that can capture their attention and leave a lasting impression. Additionally, customers in North America tend to prefer advertisements that are relevant to their interests and needs, as they are more likely to engage with and respond positively to such content.

Trends in the market: One of the prominent trends in the Traditional TV Advertising market in North America is the shift towards targeted advertising. Advertisers are increasingly leveraging data and analytics to identify specific audience segments and deliver tailored advertisements to them. This trend is driven by the desire to maximize the effectiveness of advertising campaigns and optimize return on investment. By targeting the right audience with the right message, advertisers can increase the likelihood of capturing consumers' attention and driving desired actions. Another trend in the market is the integration of digital technologies into traditional TV advertising. With the rise of streaming services and connected devices, advertisers are exploring new ways to reach consumers through digital channels. This includes the use of interactive ads, personalized content, and programmatic advertising. By combining the reach and impact of traditional TV with the targeting capabilities and interactivity of digital platforms, advertisers can create more engaging and effective advertising campaigns.

Local special circumstances: The Traditional TV Advertising market in North America is characterized by a highly competitive landscape. This region is home to numerous television networks, cable providers, and streaming services, all vying for viewers' attention and advertising dollars. As a result, advertisers need to carefully consider their strategies and tactics to stand out in a crowded market. This includes creating unique and compelling advertisements, securing prime ad placements, and leveraging partnerships and sponsorships to increase brand visibility.

Underlying macroeconomic factors: The development of the Traditional TV Advertising market in North America is also influenced by macroeconomic factors. Economic growth and stability play a crucial role in driving advertising spending. When the economy is thriving, companies are more willing to invest in advertising to promote their products and services. On the other hand, during economic downturns, advertisers may reduce their spending to cut costs. Additionally, changes in consumer behavior, such as the increasing popularity of streaming services and the decline of traditional cable subscriptions, can impact the demand for TV advertising and shape the market dynamics in North America. In conclusion, the Traditional TV Advertising market in North America is evolving to meet the changing preferences of customers. Advertisers are focusing on delivering high-quality and targeted content, leveraging digital technologies, and navigating a competitive landscape. The market is also influenced by macroeconomic factors and shifts in consumer behavior. These developments and trends are shaping the future of TV advertising in North America.

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.