Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Southern Europe

Southern Europe

Ad spending in the Traditional TV Advertising market in Southern Europe is forecasted to reach US$6.87bn by 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of -0.41%, leading to a projected market volume of US$6.73bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$34.88 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is anticipated to reach 199.0m users.
In Spain, the Traditional TV Advertising market is seeing a shift towards targeted digital strategies to reach specific audience segments effectively.

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.

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional TV Advertising market in Southern Europe has been experiencing significant growth and development in recent years. Customer preferences in the region have played a key role in driving this growth. Southern European consumers have historically shown a strong preference for traditional TV as a source of entertainment and information. They value the high-quality content and the immersive viewing experience that traditional TV offers. This preference for traditional TV has translated into a high demand for TV advertising, as advertisers seek to reach a large and engaged audience. In addition to customer preferences, there are several trends in the market that have contributed to its development. Firstly, there has been a rise in the number of TV channels and programs available in Southern Europe. This has increased the advertising opportunities for brands, as they can now target specific audiences through niche channels and programs. This trend has also led to increased competition among advertisers, as they strive to create compelling and engaging advertisements to capture viewers' attention. Another trend in the market is the increasing use of data and analytics in TV advertising. Advertisers are now able to gather data on viewers' preferences and behaviors, allowing them to tailor their advertisements to specific target audiences. This has resulted in more effective and targeted advertising campaigns, leading to higher returns on investment for advertisers. Local special circumstances in Southern Europe have also influenced the development of the Traditional TV Advertising market. For example, the region has a strong tradition of family viewing, with households often gathering together to watch TV programs. This has created a captive audience for advertisers, as they can reach multiple viewers with a single advertisement. Additionally, Southern European countries have a rich cultural heritage, with a variety of local languages and traditions. Advertisers have capitalized on this diversity by creating localized advertisements that resonate with specific regional audiences. Underlying macroeconomic factors have also contributed to the growth of the Traditional TV Advertising market in Southern Europe. The region has experienced a period of economic recovery in recent years, leading to increased consumer spending and confidence. This has resulted in higher advertising budgets for brands, allowing them to invest more in TV advertising. Furthermore, Southern European countries have a large and growing population, providing a large potential audience for advertisers. In conclusion, the Traditional TV Advertising market in Southern Europe is developing and growing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As consumers continue to value traditional TV as a source of entertainment and information, advertisers are capitalizing on this demand by creating targeted and engaging advertisements. With the increasing use of data and analytics, advertisers are able to maximize the effectiveness of their campaigns, leading to higher returns on investment.

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.