This article explores how in today’s diverse and fast-evolving global media landscape, TV advertising stands tall as a segment that has been expected to implode frequently – but always remains resilient and continues to evolve.
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As premium entertainment shows and live sporting events increasingly become the exclusive domain of pay-TV operators, multichannel TV advertising revenue is benefitting. Intensifying competition for sporting content saw record fees paid for the English Premier League soccer and NFL football in 2015 – and in 2016, 30-second slots for advertisers in the Super Bowl reached a new peak of US$50mn. Looking forward, the 2016 and 2020 Olympic Games will provide a further boost to ad revenues.
At a 15.1% CAGR, online TV advertising will more than double to US$10.19bn in 2020. However, with the prominence of ad-free subscription video-on-demand services like Netflix and Amazon, online TV advertising will still account for only 4.8% of global TV advertising revenue in 2020. The rise of online viewing and connected devices is driving the development of new audience measurement services – and as these emerge, they’ll help monetise changing consumption patterns and target ad campaigns more accurately.
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