The TV Ad Spending Market driven by rising popularity of live and online streaming services

Television advertising spending is a major part of the overall advertising industry. TV advertising reaches mass audiences directly and allows brands to create memorable messages through video content. TV ads are aimed at driving consumers to make purchases in-store or online. Popular TV programs offer branded integration opportunities where products or logos are featured within the storyline itself. The global TV ad spending market represents companies that produce and distribute advertising content across linear TV, connected TV, and over-the-top (OTT) streaming platforms. Major categories span consumer packaged goods, automotive, retail, media & entertainment, healthcare, and technology companies. With the rise of live sports events, award shows, and other premium live content, television remains one of the most impactful ways to reach mass audiences instantly.

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:
The growing popularity of streaming devices and online video platforms is a key driver shifting TV advertising dollars towards connected TV and OTT advertising. Viewers are cutting cable cords and switching to subscription video on demand services like Netflix, Hulu, and Amazon Prime Video for on-demand access to movies and TV shows. This has compelled brands to follow audience attention towards digital platforms. Live streaming of sports and major events also allows for programmatic advertising insertion across devices. Advanced targeting capabilities let advertisers reach audiences based on demographics, interests and behaviors for improved ROI. AI and machine learning further enhance ad personalization, dynamic creative optimization, and real-time bidding.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the TV ad spending market is moderate as developing new ads and establishing brand awareness requires massive investments and resources. However, digital platforms have lowered the entry barriers to some extent.

Bargaining power of buyers: The bargaining power of buyers in the TV ad spending market is high. Large advertisers and corporates have significant negotiating power and can leverage their high ad spending to bargain for better rates from TV networks and channels.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While TV networks have established relationships with advertisers, there are multiple alternative platforms for advertisers to promote their products and services.

Threat of new substitutes: With the emergence of digital advertising platforms, the threat of substitutes in the TV ad spending market is high. Social media platforms and digital video have increasingly replaced TV as preferred mediums for advertisers.

Competitive rivalry: The competitive rivalry in the TV ad spending market is high given the presence of various TV networks, channels and streaming platforms competing for advertising revenues. Players strategize innovative ad formats and content 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. Players are investing heavily in innovative advertising formats, content partnerships and strategic acquisitions to gain clients and market share.

Regional analysis: North America is projected to maintain its lead in the global TV ad spending market during the forecast period. This can be attributed to factors such as high TV penetration, increasing sales of smart TVs, presence of major players, and huge ad spending across live sports and events. The US, being the largest advertising market globally, contributes significantly to the regional market.

Key Takeaways
The global TV Ad Spending Market is expected to witness high growth over the forecast period.

*Note:

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Priya Roy

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