Connected TVs have enabled brands to target consumers more precisely through programmatic ad platforms. With the rising popularity of smart TVs, as well as increasing broadband and streaming video consumption, the scope for data-driven and addressable TV advertising is expanding rapidly.
Over-the-top (OTT) streaming services and smart TV platforms have enabled programmatic buying and measurement of TV ads. Brands can now leverage data on consumers’ online behavior, purchasing patterns, and demographics to reach their target audiences across channels like Hulu, YouTube, and streaming apps on smart TV interfaces. Programmatic TV ad platforms also provide features like frequency capping and dynamic ad insertion and replacement. This is optimizing ad experiences for viewers as well as driving better ROI for advertisers. The availability of granular viewership data is also enabling micro-targeting of ads based on geo-location, household attributes, and real-time signals.
The TV Ad spending market size was valued at US$ 212.27 Bn in 2023 and is expected to reach US$ 298.12 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 5% from 2023 to 2030.
Key Takeaways
Key players operating in the tech-enabled TV ad spending market are Procter and Gamble, Amazon, Comcast, ATandT, General Motors, Verizon Communications, L’Oréal, The Walt Disney Company, Ford Motor Corporation, Samsung Electronics, Unilever, Toyota Motor Corporation, NBCUniversal (owned by Comcast), Alphabet Inc. (Google), and Johnson and Johnson.
Connected TV platforms are opening immense opportunities for data-driven and personalized ad experiences. Smart TVs, streaming devices, and OTT services have exponentially expanded addressable inventory. Real-time bidding on programmatic platforms is also taking off, helping brands optimize spending on target audiences across networks.
Technological advancements like artificial intelligence, machine learning, and advanced data analytics are fueling more sophisticated targeting, measurement and optimization of TV ad campaigns. Contextual computer vision technology can analyze video content in real-time to serve hyper-relevant and branded video ads.
Market Drivers
The increasing popularity of OTT video services is a key driver boosting tech-enabled TV Ad Spending Market Share. Cord-cutting and cord-nevers are driving unmatched viewership growth of streaming apps like Netflix, Hulu, and Amazon Prime Video. Linear TV viewing is declining, prompting brands to shift budgets to digital platforms for better metrics and accountability. The global rollout of 5G networks will allow delivery of higher video resolutions and enable more immersive ad experiences. This will attract greater ad tech investments towards CTV and addressable TV advertising.
Challenges in TV Ad spending Market
The TV ad spending market is facing several challenges currently. One of the major issues is changing consumer behavior and increasing popularity of digital streaming platforms. Younger consumers are spending more time on social media, online videos and OTT platforms for entertainment which is reducing the time spent on traditional TV viewing. This is affecting the reach and effectiveness of TV ads. Another challenge is proliferation of ad-blocking tools which allow consumers to skip TV ads on various devices and platforms. Strict data privacy regulations around the world are also restricting how user data can be collected and used for targeting ads. Measurement of TV ad effectiveness and viewership is also becoming difficult due to growing consumption of content across multiple non-linear platforms.
SWOT Analysis
Strength: TV still reaches wide audience across demographics. Brand recognition and mass reach of TV ads is unmatched.
Weakness: Declining viewership of traditional TV. High production and distribution costs of TV ads.
Opportunity: Integration of TV with digital platforms allow enhanced targeting and measurement. Growth of Connected TV and addressable TV ads.
Threats: Rising popularity of ad-blocking. Increased regulation around user data and privacy.
Geographical regions
North America is currently the largest market for TV ad spending, accounting for over 35% of global expenditures. The US alone contributes about 25-30% of the total market value due to high television viewership and established advertising industry in the country. China has emerged as the second largest regional market and is expected to surpass the US in the next 5 years due to rapid uptake of smart TVs and connected devices. Western Europe is another major regional market led by UK, Germany, France and Italy.
Fastest growing regions
Asia Pacific excluding Japan is forecast to be the fastest growing regional market during the forecast period due to rising incomes, urbanization and digitization in major countries like India and Indonesia. Southeast Asian countries are witnessing over 10% annual growth in TV ad spending driven by economic development and increasing consumerism. Latin America, Middle East and Central/Eastern Europe are other high growth regions where TV penetration and digital adoption is on the rise.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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