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The TV Ad spending market involves spending on television commercials and promotions by companies and brands. Television remains one of the most ubiquitous mediums for mass communication and advertising. TV ads help brands increase awareness, promote new products and services, and reach wider audiences. Despite the rise of digital media and online advertising, television continues to have the highest reach among audiences across demographics. Its wide coverage and ability to integrate visual and audio components make it highly engaging and effective for advertising. However, the market is evolving with the increasing shift toward digital and streaming TV models.
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 key trends:
One of the key trends in the TV Ad spending market is the growing integration of digital capabilities in television advertising. Marketers are leveraging data, advanced targeting, and optimized ad serving capabilities to improve returns on TV ad spending. With the rise of addressable TV ads, brands can serve customized ads to specific households or target ads based on viewer preferences. This allows them to optimize campaigns in real-time based on viewer behaviors. Another trend is the increasing shift toward over-the-top (OTT) and connected TV platforms for content consumption and advertising. As consumers spend more time streaming content on devices, marketers are allocating higher budgets for OTT/Connected TV ads which offer improved targeting and measurement than traditional linear TV. This is expected to continue driving the shift from traditional TV to digital modes of advertising.
Porter’s Analysis
Threat of new entrants: The TV Ad spending market has significant barriers to entry due to require high capital investment to enter the market.
Bargaining power of buyers: Buyers have high bargaining power in the TV Ad spending market as there are number of players providing similar services which increases the competition.
Bargaining power of suppliers: Suppliers have low bargaining power due to fragmented nature of suppliers for TV ad spending market.
Threat of new substitutes: Digital media is emerging as major substitute for traditional TV ads which can impact the market.
Competitive rivalry: Intense competition exists among existing players to attract more advertisers.
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 adopting new technologies like augmented reality and programmatic advertising to enhance consumer experience and boost their market share.
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 preference for TV ads over other traditional media such as print and radio. North America dominates the global TV ad spending market owing to high penetration of television and streaming services. According to research, TV still accounts for over 30% of total ad spending in the US.
The Asia Pacific region is anticipated to exhibit the fastest growth rate over the forecast period. This is attributed to factors such rising disposable income in developing countries such as India and China and growing popularity of television as the preferred mode of entertainment.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
