TV advertising

Over the next five years, a CAGR of 5.3% will see the TV advertising sector pass the US$200bn revenue mark, with global revenues valued at US$209.4bn in 2017 compared with US$162.1bn in 2012.

The ability of legacy terrestrial TV networks to deliver the mass audiences so attractive to advertisers will ensure that the terrestrial sector continues to dominate TV advertising globally, with 73% of net revenues (US$118bn) attributable to free-to-air terrestrial channels in 2012. That figure will increase to US$146bn by 2017, representing a slightly lower proportion of the total, at 70%. That drop in percentage will be driven by the move to digital broadcasting, which facilitates the rise of pay and thematic channels, and increasing broadband penetration means there will be greater usage of online video services, including catch-up services from traditional broadcasters.

TV advertising revenues split by type (US$ mn) 2012-2017

Over the next five years, the TV advertising sector will pass US$200bn in revenue—with a CAGR of 5.3%—with global revenues valued at US$209.4bn in 2017 compared with US$162.1bn in 2012. Despite a rise in pay TV subscriptions, terrestrial television will account for 69.6% of all TV advertising revenues in 2017.


The US will still dominate global TV advertising revenues, accounting for 39.0% of the global total in 2017, which is only a modest drop from 2012’s 39.4%. But the fastest rates of growth will be in other markets, including Kenya (16% CAGR), Indonesia (15% CAGR), India (12% CAGR), Nigeria (11% CAGR) and Brazil (10% CAGR).
The 5 fastest growing TV advertising markets; 2013-17 CAGR (%)
Online TV advertising revenues will treble from 2012 to 2017 but will remain a fraction of traditional TV revenues. In Japan and South Korea, online TV advertising will, on average, more than double every year until 2017. Such aggressive growth will see Japan become the third-largest market for online TV advertising globally, behind only the US and the UK. South Korea’s emergence will move it up to number eight.
Japan and South Korea online TV revenues (US$mn) 2012-17
 

How we define this segment

This segment considers all advertising spend on broadcast and online television.

Broadcast television is split by terrestrial and multichannel and covers all advertising revenues generated by free-to-air networks (terrestrial) and pay-TV operators (multichannel).

Terrestrial covers advertising sold on traditional, over-the-air channels regardless of whether it is viewed via a subscription service or free digital TV. Multichannel includes network advertising revenue generated via pay-TV networks (cable, digital terrestrial television [DTT], Internet Protocol TV [IPTV] or satellite) including revenue from free-to-air spin-off digital channels launched by the terrestrial networks.

Online TV advertising consists of in-stream adverts only combining a total of pre-roll and post-roll. Overlays (where advertisers use a video overlay layer to deliver an ad unit) are not included within this definition.

All TV advertising revenues consist of net spending excluding agency commissions, production costs and discounts.

What data is included in the online Outlook?

Forecasts for advertising spend in the TV advertising segment across 50 countries cover (where available):

  • Broadcast TV advertising (US$ m) (broadcast TV = terrestrial + multi-channel)
  • Terrestrial TV advertising (US$ m)
  • Multi-channel TV advertising (US$ m)
  • Online TV advertising (US$m)
  • Total TV advertising spending (US$ m) (total = terrestrial + multi-channel + online)
 
 
 

 
 

Regions/countries covered

North America

EMEA

 

Asia Pacific

Latin America

Canada
United States

Western Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Central and Eastern Europe
Czech Republic
Hungary
Poland
Romania
Russia
Turkey

Middle East/Africa
Israel
Middle East/North Africa †
South Africa

Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Argentina
Brazil
Chile
Colombia
Mexico
Venezuela

 †Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates