Traditional TV Advertising - South America

Ad spending in the Traditional TV Advertising market in South America is forecasted to reach US$7.47bn in 2024.
The market is anticipated to experience an annual growth rate (CAGR 2024-2030) of 1.33%, leading to a projected market volume of US$8.09bn by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$21.77 in 2024.
By 2030, the number of users in the Traditional TV Advertising market is expected to reach 0.0users.
Traditional TV Advertising in Brazil remains a dominant force in the advertising market, attracting a wide range of industries for its broad reach and impact.

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 South America is experiencing significant growth and development due to several factors.

Customer preferences: South American consumers still have a strong preference for traditional TV advertising. Despite the rise of digital platforms, many viewers in the region continue to rely on traditional TV as their primary source of entertainment. This preference for traditional TV has created a lucrative market for advertisers looking to reach a wide audience in South America.

Trends in the market: One of the key trends in the Traditional TV Advertising market in South America is the increasing investment from international brands. As multinational companies expand their operations in South America, they are recognizing the importance of advertising on traditional TV to reach the local consumer base. This trend is driving up demand for TV advertising slots and contributing to the growth of the market. Another trend in the market is the emergence of targeted advertising. With the advancement of technology, broadcasters in South America are now able to deliver personalized ads to specific demographic segments. This allows advertisers to tailor their messages and reach their target audience more effectively. The ability to deliver targeted advertising is attracting more advertisers to the traditional TV platform in South America.

Local special circumstances: South America is a diverse region with multiple languages and cultures. This diversity presents a unique challenge for advertisers who need to create campaigns that resonate with different audiences. Advertisers in South America are adapting to this challenge by creating localized content that appeals to the specific cultural nuances of each country. This localized approach has been successful in capturing the attention of viewers and driving engagement with TV advertisements.

Underlying macroeconomic factors: The economic growth in South America is contributing to the development of the Traditional TV Advertising market. As the economies in countries like Brazil, Argentina, and Colombia continue to expand, there is an increase in disposable income among consumers. This rise in disposable income is leading to higher consumer spending, including on products and services advertised on traditional TV. Advertisers are taking advantage of this growing consumer market by investing more in TV advertising to capture the attention of potential customers. In conclusion, the Traditional TV Advertising market in South America is growing and developing due to customer preferences for traditional TV, increasing investment from international brands, the emergence of targeted advertising, the need for localized content, and the underlying macroeconomic factors of economic growth and rising disposable income. Advertisers in South America are recognizing the potential of traditional TV to reach a wide audience and are investing in this platform to effectively promote their products and services.

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.