Global Television Advertising Market Impelled by High Efficiency

Television represents the one of the most popular forms of media across the globe. Television advertising refers to the act of transmitting promotional media content to one or more program viewers. The revenue earned through these commercials helps in generating the major portion of funding for most of the privately-owned television networks. The first television advertisement was aired in the early 1940's by Bulova Watch Company. It was a 10-second long commercial which had a viewership of approximately 4,000 people hailing from New York. Over time, these advertisements were used for marketing toys and soft drinks as well as for spreading awareness about worthy causes. Television advertising became a pop culture phenomenon that introduced various amusing and heart-warming styles to attract a wide viewership. With time, numerous developments in the legislative outlay were made in the favor of public discretion. Owing to this, the advertisement broadcasters now have to comply with various standards and rules set by regulatory authorities such as avoiding any type of violence, refraining from the promotion of illegal products, usage of foul language, etc. According to IMARC Group, the TV advertising market size reached US$ 242 Billion in 2017, registering a CAGR of around 6.8% during 2010-2017. Looking forward, the global television advertising market is expected to reach a value of US$ 353 Billion by 2023.

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High ROI to have a positive impact on the market growth

Currently, television offers the most scale and provides highest return on investments made in TV ad spend in terms of both sales and awareness. Despite the changes in consumer behavior influenced by the availability of advanced technologies and new digital platforms, television remains one of the most preferred means of conveying a brand’s message to a large audience. Apart from this, television advertising also exhibits high efficiency across various industries so as to impact several KPIs (key performance indicators) such as sales and new accounts. The growth of the market is also being stimulated by the cross-product halo effect of television ads where the consumers become aware about other products displayed in an advertising apart from the target product. However, increasing popularity of online and mobile advertising across the globe is hampering the growth of the television advertising industry.

Terrestrial service holds the majority TV advertising market share

The major services offered by television advertisers include terrestrial and multichannel, wherein, terrestrial is the most popular segment as it helps the broadcasters to address the challenges posed by the internet. Along with this, digital terrestrial television advertising also reaches untapped regions and helps in spreading awareness about the several e-government services. On the other hand, the rising shift towards multichannel services can be attributed to the ability of multichannel televisions to offer content choice, present targeted content, improve value and efficiency, and reach quality audiences.

Consumer goods represents the largest industry

The market has been segmented on the basis of different industries which utilize television advertising. Presently, the consumer goods industry represents the leading segment as the growth of the industry is directly correlated with advertising spend. Television advertising uplifts the brand’s name and spreads awareness about the product category. Moreover, it helps the consumers to know the true nature and features of the product with a display video which is not possible with radio, or digital advertising where consumers are able to skip the ad. The consumer goods industry is followed by the automotive, hotels and restaurants, insurance and finance, communication and telecom, and food and beverage industries.

North America dominates the TV advertising market

On a geographical-basis, the market has been segregated into North America, Asia Pacific, Western Europe, Latin America, Eastern Europe, and Middle East and Africa. Amongst these, North America exhibits a clear dominance, holding the majority of the market share. This can be accounted to the rising media spending in the TV advertising market in the USA.

About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the television advertising industry, which has enabled the clients to successfully set up and expand their businesses. Some of the company’s offerings include:

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