Traditional TV Advertising - Philippines

Ad spending in the Traditional TV Advertising market in the Philippines is forecasted to reach US$632.50m in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 2.78%, leading to a projected market volume of US$745.70m by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$6.12 in 2024.
By 2030, the number of users in the Traditional TV Advertising market is anticipated to reach 0.0users.
In the Philippines, Traditional TV Advertising remains a dominant force in marketing strategies despite the rise of digital platforms.

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 Philippines is experiencing significant growth and development in recent years.

Customer preferences: Customers in Philippines still have a strong preference for traditional TV advertising. Despite the rise of digital advertising platforms, traditional TV advertising remains a popular choice among advertisers in the country. This can be attributed to the wide reach and penetration of television in the Philippines, as well as the trust and familiarity that customers have with this medium.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Philippines is the increasing investment from local businesses. As the economy continues to grow, local businesses are expanding their operations and looking for effective ways to reach their target audience. Traditional TV advertising provides them with a reliable and cost-effective solution to promote their products and services to a wide audience. Another trend in the market is the shift towards targeted advertising. Advertisers are becoming more focused on reaching specific demographics and target groups, rather than broadcasting their messages to a mass audience. This has led to the emergence of niche TV channels and programs that cater to specific interests and demographics. Advertisers are leveraging these specialized channels to reach their target audience more effectively.

Local special circumstances: The Philippines is a diverse country with multiple languages and cultural influences. This presents a unique challenge for advertisers who want to create effective TV advertisements. Advertisers need to consider the cultural nuances and preferences of different regions in the country to ensure that their ads resonate with the local audience. This has led to the development of localized TV advertisements that are tailored to specific regions or communities within the Philippines.

Underlying macroeconomic factors: The strong economic growth in the Philippines has contributed to the development of the Traditional TV Advertising market. As the economy expands, businesses have more resources to invest in advertising and marketing activities. This has led to increased competition among advertisers, driving up the demand for TV advertising slots. Additionally, the growing middle class in the Philippines has increased consumer purchasing power, making it an attractive market for advertisers. In conclusion, the Traditional TV Advertising market in Philippines is witnessing growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers in the country recognize the value and effectiveness of traditional TV advertising in reaching their target audience. As the market continues to evolve, we can expect to see further innovations and advancements in this sector.

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.