TV Ad spending Market is Estimated To Witness High Growth Owing To Streaming Trendsb
The TV Ad spending Market is estimated to be valued at US$ 130.22 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The TV Ad spending market consists of marketing budgets allocated by companies and organizations for advertising on television platforms. TV remains one of the most powerful mediums for advertising with highest reach. However, with growing popularity of streaming platforms like Netflix and Hulu, TV ad spending is shifting toward connected TV ads and digital video platforms.
Market key trends:
One of the major trends shaping the TV ad spending market is growing prominence of Connected TV and streaming platforms. As consumers are spending more time consuming content on streaming services on their smart TVs and devices, advertisers are also shifting their budgets toward connected TV ads to leverage targeted advertising capabilities offered by streaming platforms. It is estimated that connected TV and over-the-top (OTT) advertising spending will grow at over 20% annually from 2022 to 2027. Major players like Netflix, Amazon and Hulu are offering innovative ad formats and solutions to seize this opportunity and capture larger share of TV ad budgets shifting from traditional television. This shift toward streaming is expected to primarily drive the growth of TV ad spending market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established brand loyalty to existing players make entry difficult.
Bargaining power of buyers: Large buyers such as automakers can negotiate lower ad rates. However, viewers have limited options to switch if not satisfied.
Bargaining power of suppliers: Advertising agencies have some control over pricing and campaigns. However, top networks attract most advertisers.
Threat of new substitutes: Alternatives like online streaming and product placements pose threat but TV remains hugely popular.
Competitive rivalry: Intense competition exists between top networks to attract largest advertisers through unique programming and viewer engagement.
SWOT Analysis
Strengths: TV reaches mass audience. Popular shows command premium rates. Data targeting improves efficiency.
Weaknesses: Declining viewership especially among youth. High production/air-time costs. Difficult to measure ROI of offline ads.
Opportunities: Data targeting expands addressable markets. Product placements integrate ads into content. Streaming brings on-demand ads.
Threats: Declining viewership shifts budgets to digital. Regulation limits data usage. Streaming fragmentation splinters audiences.
Key Takeaways
The Global Tv Ad Spending Market Share was valued at US$ 130.22 Bn in 2023 and is expected to grow at a CAGR of 6.7% during the forecast period. Increased time spent on television during the Covid pandemic along with return of live sports has boosted spending on TV ads.
The North American region dominated the global market in 2023 with a share of over 35%, led by major economies of US and Canada. Availability of varied content and growing sports culture in the region has supported TV advertising. However, Asia Pacific is expected to witness fastest growth during the forecast period owing to increasing disposable incomes, westernization and expanding media and entertainment industry in major countries like India and China.
Key players operating in the TV Ad spending market are Procter & Gamble, Amazon, Comcast, AT&T, General Motors, Verizon Communications, L'Oréal, The Walt Disney Company, Ford Motor Company, Samsung Electronics, Unilever, Toyota Motor Corporation, NBCUniversal (owned by Comcast), Alphabet Inc. (Google), and Johnson & Johnson. Top advertisers regularly invest in marquee properties, award shows and live sports broadcasters to maximize their reach and engage target audiences.