June 15, 2024

TV Ad spending Market Propelled by Increased Viewership Through Connected TVs

Television advertising helps brands connect with large audiences by broadcasting ads through traditional cable and satellite television, as well as newer platforms like connected TVs. TV ads allow companies to promote products and services to mass consumer bases, helping to build awareness and drive sales. The global TV Ad spending Market provides opportunities for all types of businesses to reach customers at scale.

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:
Increased viewership through connected TVs such as streaming devices and smart TVs is propelling the TV Ad spending Market forward. By using connected TVs, viewers can now watch both live television and on-demand content via the internet on their televisions. This has enabled TV advertising to follow consumers who have shifted partial viewing habits online. Marketers are investing more in targeted, data-driven ads delivered through connected TV platforms, which offer improved measurement of ad effectiveness compared to traditional television. Connected TVs now account for over one-third of television viewing time in major markets and are poised to drive continued growth in the TV Ad spending Market over the coming years.

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. Large advertisers and media owners are exploring newer ad formats, improved targeting through data and connected TVs to drive better ROI from TV advertising.

Regional Analysis: North America dominates the market currently due to high TV consumption and advertising spends. However, Asia Pacific is expected to grow at the fastest rate led by India and China with increasing disposable incomes and adoption of smart TVs.

SWOT Analysis
Strength: TV ads allow for targeting of large audiences cost effectively through broadcasting. TV ads are wide reaching and can create instant brand awareness.
Weakness: TV ads are moving to online platforms where targeting and measurement are better. Younger audiences are watching less linear TV. TV ads have limited control over who views them.
Opportunity: Digital capabilities of smart TVs allow for improved targeting and measurement. TV ads can be complemented by digital and social ads for improved ROI. Multi-platform campaigns provide opportunities for audience engagement.
Threats: Viewers are adopting streaming services and time-shifted viewing reducing commercial minutes viewed. More Ad blocking on digital platforms reduces effectiveness of TV campaigns. Competition for consumer attention and spending from digital platforms.

Key Takeaways
The global TV Ad Spending Market is expected to witness steady growth.

*Note:

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