Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - United States

United States

Ad spending in the Traditional TV Advertising market in the United States is forecasted to reach US$59.18bn in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of -3.67%, leading to a projected market volume of US$49.10bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is anticipated to be US$268.80 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in the United States is estimated to be 226.5m users.
In the United States, the shift towards digital platforms is challenging the dominance of Traditional TV Advertising in the advertising market.

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 United States is experiencing significant growth and development.

Customer preferences: Customers in the United States still prefer traditional TV advertising as a primary source of information and entertainment. Despite the rise of digital platforms, television remains a popular medium for reaching a wide audience. Many consumers value the high production quality and immersive experience that traditional TV advertising offers. Additionally, television provides a sense of credibility and trustworthiness that is often lacking in digital advertising.

Trends in the market: One of the key trends in the Traditional TV Advertising market in United States is the increasing use of targeted advertising. With advancements in technology, advertisers are now able to segment their audience and deliver more personalized messages. This allows for greater efficiency and effectiveness in reaching the desired target market. Advertisers are also leveraging data analytics to measure the impact of their TV campaigns and optimize their strategies. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are incorporating interactive features, such as QR codes and social media hashtags, to engage viewers and drive online interactions. This convergence of traditional and digital advertising creates a more holistic and integrated marketing approach.

Local special circumstances: The United States has a highly competitive advertising market, with a wide range of TV networks and channels. This creates a diverse and fragmented landscape, where advertisers have the opportunity to target specific demographics and niche audiences. Advertisers in the United States also benefit from a large and affluent consumer base, which provides ample opportunities for brand exposure and revenue generation.

Underlying macroeconomic factors: The strong economy of the United States plays a significant role in the growth of the Traditional TV Advertising market. A robust economy leads to increased consumer spending and business investments, which in turn drives demand for advertising. Additionally, the United States has a well-established advertising industry with a long history of innovation and creativity. This fosters a favorable environment for advertisers to experiment with new formats and strategies. In conclusion, the Traditional TV Advertising market in United States is thriving due to customer preferences for high-quality content, the integration of digital elements, a competitive advertising landscape, and a strong economy. These factors contribute to the continued growth and development of the market, making it an attractive platform for advertisers to reach their target audience.

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.