The TV advertising market is changing globally. Audiences are gradually shifting from linear broadcasting to VOD services, and advertisers' interest is changing with it. According to a report by Warc, global spending on linear TV will fall to $143.9 billion this year, representing only 12.4% of total advertising investment. By comparison, in 2013, traditional TV still held just under half of that (41.3%).
"There is no doubt that the role of linear TV is slowly fading, both in viewership and ad spend, due to the shift of viewers to the expanding ecosystem of individual TV. However, new players such as large technology companies and media retailers believe that TV is what will help them monetise their brands, and smart TV manufacturers are creating their own ad-funded TV channels," comments Alex Brownsell of Warc Media.
Over the last 10 years - 2014-2024 - advertising spend on linear TV has fallen by 27.5%, and 50.8% if the impact of inflation is added.
Moreover, the share varies by sector - for example, it has fallen by 42% for technology and electronics, but only 12% for household products.
Advertisers are diversifying their media budgets and increasingly investing in CTV alongside traditional TV. Internet-connected TV is expected to earn $39.9 billion from advertising this year and $44.7 billion next year. In the US alone, CTV already accounts for almost half of all TV viewing, according to Nielsen data.
Viewing of VOD services is stronger among the younger generation. The older generation still watches more traditional TV, spending over two hours a day doing so in the U.S., while young viewers aged 16 to 21 spend only 81 minutes on it, GWI data shows.
Viewing on TV devices is also growing on YouTube, which made $36 billion in ad sales across devices last year. The video platform, which is owned along with Google by Alphabet, is also trying to acquire sports rights and include sitcom-style shows in its offerings.
Source: mediaguru.cz