TV Advertising Market

Global TV Advertising Market Size (2024 to 2029)

The size of the global TV advertising market is estimated to be worth USD 344.7 billion in 2024 and 421.6 billion by 2029, growing at a CAGR of 4.11% during the forecast period.

TV advertising continues to be a significant force in the overall advertising industry despite the rise of digital platforms. The current trends in TV advertising describe its evolution including digital integration, targeted advertising and a data-driven approach. Advertisers consider that TV advertising is a significant channel to approach their target audience and use it along with their social media and online channels. TV advertising further offers advanced analytics to enable precise audience targeting and insights for campaign optimization. Despite the growth of digital alternatives, the demand for TV advertising remains high due to its unparalleled mass reach and impact, especially during popular shows or events.

Global TV Advertising Market Drivers: 

The global increase in TV viewership is one of the key factors propelling the growth of the TV advertising market. As per the statistics, an estimated 1.72 billion households have access to television worldwide and the number is gradually growing, which is further resulting in the continuous and widespread increase in TV viewership. Factors such as the availability of diverse content, accessibility of television in emerging markets and the introduction of smart TVs are contributing to the average daily time spent watching TV. In several countries, the average daily time spent watching TV is still considerable, which is leading the way for TV advertising. For instance, the average time spent by an adult in the U.S. was 294 minutes per day in Q4 2022 and 303 minutes in Q4 2019. Considering this trend, advertisers leverage TV advertising to reach a broader audience.

Targeted advertising capabilities that TV advertising offers promote the market’s growth rate. Advertisers have been emphasizing targeted advertising capabilities to craft their messages to specific audience segments and this approach is believed to be more effective and generates a high engagement rate compared to non-targeted ads. Content when personalized and pitched to a specific audience and is estimated to perform 58% more effectively compared to doing the same to a wider audience. Considering this, businesses have recognized the impact of personalized content and increasingly using TV advertising channels to reach targeted audiences.

The integration of TV advertising with digital platforms plays a pivotal role in the growth of the global market. With 65% of consumers simultaneously using their smartphones while watching TV, advertisers utilize cross-platform strategies. Integrating TV ads with digital channels boosts overall brand exposure, leading to a 30% increase in ad recall and this synergy drives the TV advertising market by expanding the reach and impact of campaigns across multiple platforms.

Furthermore, live event broadcasting popularity in TVs, the emergence of connected TVs, the availability of data analytics for audience insights, partnerships with streaming services and localized and regionalized advertising are contributing to the growth of the TV advertising market. The rise in smart TV ownership and global expansion of TV networks and channels are aiding the global market growth.

Global TV Advertising Market Restraints: 

The rise of streaming services is one of the biggest restraints to the growth of the TV advertising market at a global scale. Rapid shift in audience attention to online platforms, growing competition from digital advertising and challenges in measuring TV ad effectiveness are negatively impacting the growth of the global market. Limited targeting capabilities compared to digital, cost challenges for small and local businesses and advertiser concerns about ad fraud and viewability are further hindering the growth of the TV advertising market.

REPORT COVERAGE:

This research report on the global TV advertising market has been segmented and sub-segmented based on type, application and region.

Global TV Advertising Market - By Type:

• More than 60 Seconds
• 60 Seconds
• 20 Seconds

Based on type, the 20 seconds segment dominated the global TV advertising market, accounting for the highest share in 2023 and the domination of the 20 seconds is likely to continue throughout the forecast period. The 20-second segment is also the fastest-growing segment among all in the global market. The dominance of the 20-second segment is majorly attributed to the higher viewer retention rate of the 20-second ads. Ads that have a timeline of 20 seconds have a 25% higher viewer retention rate compared to the other timelines. Advertisers have been increasingly using shorter formats to convey their message to their audience, which is boosting segmental growth. The growing global spending on 20-second TV ads is further supporting the growth of the segment.

Global TV Advertising Market - By Application:

• Commercial & Personal Services
• Consumer Goods
• Food & Beverage Industry
• Health & Medical Industry
• Vehicles Industry
• Others

Based on application, the consumer goods segment accounted for the leading share of the global market in 2023 and is predicted to witness a promising CAGR during the forecast period. Factors such as global spending on TV advertising for commercial services and lucrative ROI for service companies with targeted TV advertising are driving the growth of the consumer goods segment in the global market.

On the other hand, the vehicle industry segment is anticipated to register a CAGR of 5.4% during the forecast period in the global market. Factors such as the growth in TV advertising spending and seasonal promotions through TV ads by the vehicle companies, leveraging TV ads for brand positioning and lifestyle association and increased competition in the automotive sector are propelling the growth of the vehicle industry segment in the global market.

Global TV Advertising Market - By Region:

• North America,
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

During the forecast period, the Asia-Pacific is predicted to dominate the TV advertising market and witness a CAGR of 5.42%. The adoption of smart TVs is high in the countries of the Asia-Pacific region, which is one of the key factors propelling the APAC market growth. The rise in the middle-class population driving consumerism, the growing digitalization of TV broadcasting and the rapid integration of e-commerce in TV advertising are further boosting the growth of the Asia-Pacific TV advertising market. Currently, China is the largest TV advertising market in the Asia-Pacific region. India and Japan are estimated to account for a considerable share of the Asia-Pacific market during the forecast period.

North America is one of the largest regional segments for TV advertising and is anticipated to account for a substantial share of the global market during the forecast period. A high preference for addressable TV advertising by advertisers in North America is primarily propelling the North American market growth. For instance, an estimated 60% of advertisers in North America consider addressable TV advertising as a promising channel to reach the target audience. The growing popularity of streaming services and the integration of programmatic advertising in TV campaigns are further boosting the growth rate of the North American market.

Europe is a noteworthy regional market for TV advertising market and is anticipated to hold a considerable share of the global market during the forecast period. The growth of the European market is primarily driven by the increasing popularity of connected and smart TVs, collaborations between broadcasters and digital platforms and growing investments in high-quality and premium content. The UK and Germany collectively account for approximately 50% of the European market share.

Latin America is expected to grow at a steady CAGR during the forecast period owing to the growing penetration of cable and satellite TV services. Brazil and Mexico together occupy 61.5% of the Latin American market share.

The TV advertising market in MEA is estimated to showcase a moderate CAGR in the coming years. UAE and South Africa are major contributors to the MEA market. In Africa, the FIFA World Cup that happened recently resulted in a 20% increase in TV ad spending.

KEY MARKET PLAYERS:

A few of the major players in the global TV advertising market that are covered in this research report include CBS, Sun TV Network, Time Warner, Sinclair Broadcast Group, Vivendi, Omnicom Group, Publicis Groupe, Comcast, Viacom, Gray Television, BPG Group, AMC, Elephant Nation, WPP, TBWA\Raad, Havas SA, FP7 McCANN, MullenLowe MENA, Mars Media Group, Intango, Tonic International, and The Walt Disney Company.