Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Spain

Spain

Ad spending in the Traditional TV Advertising market in Spain is forecasted to reach US$2.30bn in 2024.
The sector is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -1.34%, leading to an estimated market volume of US$2.15bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Spain is projected to be US$56.00 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Spain is expected to be 41.1m users.
Spain's Traditional TV Advertising market is experiencing a resurgence as companies prioritize reaching a wide audience through this established and trusted medium.

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 Spain has been experiencing significant growth in recent years.

Customer preferences: Spanish consumers still have a strong preference for traditional TV advertising, despite the rise of digital advertising platforms. This can be attributed to the fact that television remains one of the most popular forms of media in the country, with a large portion of the population regularly tuning in to watch their favorite shows and programs. Additionally, many consumers trust television advertisements more than digital ads, as they perceive them to be more credible and reliable.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Spain is the increasing demand for targeted advertising. Advertisers are now leveraging data and analytics to identify specific audience segments and tailor their TV ads accordingly. This allows them to reach their target audience more effectively and increase the chances of generating a positive response. Furthermore, there has been a rise in the use of programmatic advertising, which enables advertisers to automate the buying and selling of TV ad inventory. This not only streamlines the process but also allows for more precise targeting and better ROI.

Local special circumstances: Spain has a unique television landscape, with a mix of national, regional, and local broadcasters. This presents both opportunities and challenges for advertisers. On one hand, it allows them to reach a diverse range of audiences across different regions. On the other hand, it can be difficult to navigate the fragmented market and ensure that their ads are reaching the right viewers. Advertisers need to carefully consider their target audience and choose the most appropriate channels and time slots to maximize the impact of their TV ads.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Spain can also be attributed to favorable macroeconomic factors. Spain has experienced a period of economic recovery in recent years, with increasing consumer confidence and spending power. This has led to higher advertising budgets and increased investment in TV advertising. Additionally, the country's tourism industry has been booming, attracting millions of international visitors each year. This presents a lucrative opportunity for advertisers to target tourists through television ads, further driving the growth of the market. In conclusion, the Traditional TV Advertising market in Spain is thriving due to customer preferences for television as a trusted and popular media platform, the increasing demand for targeted and programmatic advertising, the unique television landscape in the country, and favorable macroeconomic factors. Advertisers in Spain should continue to leverage the power of traditional TV advertising to effectively reach their target audience and drive business growth.

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.