Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Peru

Peru

Ad spending in the Traditional TV Advertising market in Peru is forecasted to reach US$356.70m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.44%, leading to an estimated market volume of US$383.20m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$14.19 in 2024.
It is expected that the number of users in the Traditional TV Advertising market will reach 26.7m users by 2029.
Peru's Traditional TV Advertising market is seeing a shift towards digital platforms as viewers increasingly consume content online.

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 Peru has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Peruvian consumers still have a strong preference for traditional TV advertising, despite the rise of digital platforms. This can be attributed to the fact that television remains the primary source of entertainment for many households in Peru. Additionally, traditional TV advertising offers a wide reach and allows advertisers to target specific demographics effectively.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Peru is the increasing investment from local businesses. As the Peruvian economy continues to grow, local companies are allocating more resources to advertising to reach a larger audience and gain a competitive edge. This has led to a surge in advertising spending on traditional TV platforms. Another trend in the market is the emergence of niche channels catering to specific interests and demographics. This trend is driven by the fragmentation of the television audience, as viewers have more options to choose from. Advertisers are recognizing the value of targeting specific niche markets and are allocating their advertising budgets accordingly.

Local special circumstances: Peru has a diverse population with varying cultural backgrounds and preferences. This diversity has resulted in a wide range of programming options on traditional TV channels, catering to different segments of the population. Advertisers can take advantage of this diversity by tailoring their advertisements to specific cultural groups or regions. Furthermore, the Peruvian government has implemented regulations to promote local content on traditional TV channels. This has led to an increase in the production of local programming, providing more opportunities for advertisers to reach the Peruvian audience.

Underlying macroeconomic factors: Peru has experienced steady economic growth in recent years, which has contributed to the growth of the Traditional TV Advertising market. As the economy continues to expand, businesses have more resources available for advertising, leading to increased spending on traditional TV platforms. Additionally, the increasing urbanization and rising middle class in Peru have resulted in a larger consumer base for advertisers to target. This has created a favorable environment for the Traditional TV Advertising market to thrive. In conclusion, the Traditional TV Advertising market in Peru is developing due to customer preferences for traditional TV, increasing investment from local businesses, the emergence of niche channels, the diversity of the population, government regulations promoting local content, and underlying macroeconomic factors such as economic growth and urbanization.

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.