TV Ad spending Is Estimated To Witness High Growth Owing To Growth In OTT Platforms
Television advertising involves marketing and promoting of products or services on television. It helps businesses to reach out to targeted audiences through both conventional TV and online streaming platforms. TV remains one of the most effective mediums for brands to build awareness and engage customers.
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 Dynamics:
Growth in OTT platforms: The rise of over-the-top (OTT) platforms and video-on-demand services has opened new avenues for TV advertising. Brands are significantly increasing their digital ad spends on platforms such as Netflix, Amazon Prime Video and Disney+ to target cord-cutters. This rapid shift towards streaming is expected to drive the demand for TV ads over the forecast period.
Changing viewer preferences: Younger audiences in particular are spending more time watching online content on various devices instead of traditional cable or satellite TV. Advertisers are actively working on data-driven strategies and personalized ad formats to engage these mobile-first viewers. This change in viewership trends is propelling the TV ad spending market.
SWOT Analysis
Strength:
One of the most effective mediums for mass communication. Allows brands to reach a huge target audience. TV ads are highly engaging and impactful for brand awareness.
Weakness:
Declining TV viewership due to emergence of digital platforms. High production and airing costs involved. Difficult to track ROI.
Opportunity:
Scope for data-driven targeting of ads. Growing CTV and OTT viewership present new opportunities. Rising video advertising on social media platforms.
Threats:
Growing popularity of ad-blocking software. Stricter data privacy regulations can limit targeted advertising. Shift of viewer attention to mobile and digital media.
Key players
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), Johnson & Johnson. Major players are focusing on data-driven targeting and connecting TV with digital to enhance ROI.
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), Johnson & Johnson. Major players are focusing on data-driven targeting and connecting TV with digital to enhance ROI.
Regional analysis
North America dominates the global market currently, owing to high TV advertising spending. Asia Pacific is expected to witness the fastest growth in TV ad spending driven by increasing spending in India and China.
Key Takeaways
The global TV Ad spending market is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing digital transformation of TV. The market size for 2023 is US$ 130.22 Bn.
North America dominates the global market currently, owing to high TV advertising spending. Asia Pacific is expected to witness the fastest growth in TV ad spending driven by increasing spending in India and China.
Key Takeaways
The global TV Ad spending market is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing digital transformation of TV. The market size for 2023 is US$ 130.22 Bn.
