July 19, 2024

Streaming Video Ad Spending is the largest segment driving the growth of TV Ad spending Market

The TV Ad spending market includes spending on linear TV as well as Connected TV ads like over-the-top media services and online streaming platforms. It provides advertisers with a widespread reach to target audiences.

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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
There is a rising shift from traditional linear TV viewing to Connected TV or streaming platforms as people are increasingly consuming content on demand via streaming services. This has boosted the streaming video ad segment which allows for targeted and engaging ads on streaming platforms. Streaming video ads allow for data-driven targeting of ads based on viewers’ interests and demographics. They also offer advantages like skippable ads and better measurement of ad effectiveness. This trend is expected to continue driving higher spending on streaming video ads.

SWOT Analysis

Strength: TV ads are highly effective in reaching mass audience and generating brand awareness. TV ads allow advertisers to combine visual and audio elements to effectively convey messages.
Weakness: TV ads are relatively expensive compared to digital ads. Audience fragmentation due to proliferation of viewing options have weakened TV’s effectiveness. Younger audiences spend more time on digital platforms over TV.
Opportunity: Growth of connected TV platforms and addressable TV ads presents an opportunity for data-driven targeted advertising. Advertisers can leverage viewer data to run customized ads for different audience segments.
Threats: Declining TV viewership especially among younger demographics pose a threat. Rising popularity of ad-blocking on digital platforms can reduce effectiveness of TV ads. stricter data privacy regulations may limit ability to target ads.

Key players operating in the TV Ad spending market are Procter & Gamble, Amazon, Comcast, AT&T, General Motors, Verizon Communications, L’OrĂ©al, 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 customizing their TV ad offerings as per evolving viewers preferences, new programming formats and evolving media distribution landscape.

Regional analysis:
North America represented largest share of global TV ad spending market in 2023, with United States holding major share. growth in connected TV platforms and addressable TV will further bolster market in the region. Asia Pacific market is expected to grow at fastest rate during forecast period led by India and China. Rapid economic development, rising disposable incomes and growing middle class population are driving TV advertising spending in Asia Pacific region. Latin America and Middle East & Africa also offer lucrative opportunities for TV ads market owing to increasing digitalization.

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 demand from advertisers to reach mass audience through impactful brand building campaigns. North America dominated the global market in 2023 with a share of over 35%, owing to large ad budgets of major companies in US and Canada. Asia Pacific is anticipated to be the fastest growing regional market during the forecast period, driven by rising disposable incomes, expanding middle class and increasing TV penetration in major countries like China and India.

*Note:

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