TV advertising

TV advertising

 

TV advertising markets by growth and scale


View the infographic

US dominates online TV advertising from traditional broadcasters

Multichannel and online share on an upwards trajectory, as terrestrial falls

Key insights at a glance

1

Despite the growth of digital media, TV advertising remains the place to be. Global TV advertising revenue is successfully responding to the rise of newer forms of digital media. Global TV advertising revenue will grow at a CAGR of 5.5% over the next five years, confirming TV as the ‘place to be’ for advertisers looking to reach big audiences.

 
2

Online TV advertising will double its share of total TV advertising revenue in the next five years. Online TV advertising revenue from traditional broadcasters will increase from US$3.7bn in 2013 to US$9.7bn in 2018, and more than double its share of total TV advertising from 2.2% in 2013 to 4.5% in 2018. Traditional broadcasters still dominate and are adapting to the online video opportunity, so creating themselves a significant new revenue stream, despite competition from Internet rivals.

 
3

Terrestrial’s share of advertising will fall as multichannel and online grow. Terrestrial TV is the primary contributor to advertising revenues, but its share of the TV advertising market will fall from 73% in 2013 to 68% in 2018. Multichannel’s share, by contrast, will grow from 25% to 27%, while online TV advertising’s share will rise from 2.2% in 2013 to 4.5% in 2018.

 
4

Failure to embrace new audience measurement metrics will see TV lose advertising revenue to other digital media players. Even in the most advanced TV markets, broadcasters and advertisers are still unclear how audiences consume their content. Digital media metrics will quickly gain ground in the next five years and despite the apparent resilience of the current TV model, existing players need to adopt new metrics if they are to compete for advertising revenue in the long term.

 
5

TV advertising’s future development depends on current legal cases. The outcome of ongoing legal cases will significantly impact future TV business models. For example, Aereo’s Internet distribution model – and other controversies such as ‘net neutrality’ and Dish’s ‘Hopper DVR’ – have the potential to significantly impact traditional TV advertising models.



What data can I access by purchasing an online subscription?

The following data is available for TV advertising for 54 countries (where available).

Revenue data:

  • Total TV advertising revenue
  • Online TV advertising revenue
  • Total broadcast TV advertising revenue
  • Total multi-channel TV advertising revenue
  • Multichannel TV advertising revenue (non-US)
  • Cable networks advertising revenue (US only)
  • Multichannel systems advertising revenue (US only)
  • Total terrestrial TV advertising revenue
  • Broadcast networks advertising revenue (US only)
  • Television stations advertising revenue (US only)
  • Terrestrial TV advertising revenue (non-US)

Segment definition

This segment comprises all TV advertising revenue, including broadcast and online. Broadcast television covers all advertising revenues generated by free to air networks (terrestrial) and pay-TV operators (multichannel). Online TV advertising consists of in-stream adverts and reflects revenues from pre-roll, mid-roll and post-roll ads around TV content distributed by broadcaster-owned websites.

This section includes revenues only from TV viewed online, delivered by traditional broadcasters via their own websites, and excludes advertising around video content on Internet-based sites such as YouTube (whose revenues appear under video Internet advertising). Advertising revenue is net of agency commissions, production costs and discounts in all territories. This revenue is a combination of digital (TV) and non-digital (online).

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

Multichannel includes non-core network advertising revenue generated via pay-TV networks (cable, digital terrestrial television (DTT), Internet Protocol Television (IPTV) or satellite) including revenue from free-to-air spin-off digital channels launched by the core terrestrial networks. This revenue is considered non-digital.

Terrestrial covers advertising sold on traditional, core, over-the-air TV channels even if they are viewed via a subscription service or free digital TV. This revenue is considered non-digital.

For the US only, multichannel advertising is split between cable networks and multichannel systems, while terrestrial advertising is split between broadcast networks and televisions stations. Other territories do not make this distinction.

Online TV advertising consists of in-stream adverts only, combining revenues from pre-roll, mid-roll and post-roll. Overlays (where advertisers use a video overlay layer to deliver an ad unit) are not included within this definition. This revenue is considered digital.

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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