6. 1. 2022
TV advertising will remain strong this year, with the rebound in spend experienced during 2021 forecast to continue, due to a change in consumer habits, according to Enders Analysis data.

Just Eat, Peloton and Vinted tap into new consumer habits while sporting events bolster TV adspend.

TV adspend, including video on demand, is forecast to reach £5.53bn in 2022, up 2% from an estimated £5.42bn last year. The figures forecast for this year show a slowing of the huge 25% rebound experienced in 2021, which came after TV adspend dipped to £4.35bn in 2020, but an overall uplift of 12% since pre-pandemic spend in 2019.
“While the TV advertising market was always expected to rebound after the unprecedented decline in 2020, the level of growth [in 2021] is much higher than anticipated,”

the report said.
“We forecast the total market being up 25% versus 2020, which is 10% higher than in 2019. Given the strength of the current market, it is difficult to predict 2022 with any certainty, although we are forecasting growth of 2%.”

Not surprisingly, the government’s Covid "stay at home" messaging and closure of entertainment venues reduced consumer footfall, affecting cinema and outdoor revenues, leading to some advertising budgets shifting towards TV. However, Enders Analysis believes "much of the increase in advertiser demand is driven by their increased confidence in the effectiveness of television in driving return on investment in both the long and short term”. The report also notes that some traditional TV advertisers, such as Unilever, Tesco and BGL Group, which owns Comparethemarket, seem to have reversed declining TV budgets, and advertised more in both 2020 and 2021. Meanwhile, some newer brands, such as preloved trading business Vinted, exercise brand Peloton and food delivery firm Just Eat, have seen meteoric rises as they cater for new, home-based consumer demands.

Major events including the highly anticipated Euro 2020 football tournament held in the summer of 2021 also helped fuel the rebound, as broadcaster ITV reported a huge lift in ad revenue in July, when it covered England’s march to the final. In November, ITV announced it was on track to report its highest-ever annual ad revenue as figures indicated a 30% rise to £1.35bn.

In the future, Enders predicts linear TV audiences will decline, with BVOD generating an increasingly greater proportion of revenue as viewing naturally transitions online. The report forecasts BVOD revenues were up 40% in 2021 and could increase by 25% in 2022, with growth driven by innovations including addressable advertising. The figures are part of latest research by Enders Analysis, which forecasts robust growth in display adspend.

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