TV advertisement spending involves marketing communication activities aimed at targeting potential customers through television commercials. It is one of the most effective mediums for mass branding and launching new products. Traditionally, TV ads have been the backbone of marketing strategies for consumer goods and automobile companies. However, with rapid digitalization and rise of digital streaming platforms, companies are increasingly shifting focus towards digital and socially targeted video ads.

The global 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:

Growing Digitalization: Rapid digital transformation and widespread adoption of smartphones along with expanding digital infrastructure has changed media consumption patterns across the world. Today, viewers prefer digitally streaming content on demand on various OTT platforms rather than watching scheduled live broadcasts. This has compelled advertisers to optimize their spending and shift focus from traditional TV to digital video ads. As per reports, in 2019 digital platforms accounted for 21% of total ad spending which is estimated to rise to 27% by 2023. The growing digitalization is thus driving growth of the global TV ad spending market over the forecast period.

Growing Digitalization: With rapid digitalization, consumer preference for content consumption is shifting from traditional TV to various online streaming platforms available on demand. This has compelled major advertisers to optimize their spending and increase focus on digital video ads. As per reports, share of digital platforms in total ad spending increased from 21% in 2019 to an estimated 27% by 2023. The growing preference for streaming content online is thus expected to further propel the global TV ad spending market during the forecast period.

SWOT Analysis
Strength: TV Ad spending provides instant reach and mass media coverage to businesses with wide consumer base. It allows for creative visual ads to connect with viewers on a emotional level. Traditional TV still continues to have highest viewership rates compared to other mediums.

Weakness: TV ads are expensive for businesses and rising costs can impact smaller advertisers. Viewership is declining with growing cord cutting and increasing consumption of online streaming content. Ads can be skipped or ignored using DVR and other technologies.

Opportunity: Data and targeting capabilities allow for more personalized and relevant ads on connected TVs and streaming platforms. Streaming services are opening new opportunities for innovative ad formats and placements. Multi-platform video campaigns integrating TV, digital and social can optimize reach and engagement.

Threats: Declining television viewership shifts ad dollars to digital media with better tracking. Rise of ad-blocking threatens monetization rates. Stiff competition for viewer attention from various streaming entertainment options. Privacy regulations may impact data-driven personalized targeting.

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. These companies are investing in data-driven addressable capabilities, cross-screen solutions and innovative ad formats.

Regional analysis: The Asia Pacific region is projected to showcase significant growth opportunities in TV ad spending during the forecast period. Countries like India and China are anticipated to boost investments as pay-TV and broadband infrastructure expands into smaller cities and towns. Local broadcast networks, video streaming services and e-commerce platforms will fuel advertisers interest in TV as a mass reach medium.

Key Takeaways

The global TV Ad spending market is expected to witness steady growth driven by increased penetration of connected TVs and adoption of addressable advertising.