DUBLIN–(BUSINESS WIRE)–8 Feb, 2022 – The “TV Advertising Global Market Report 2022” report has been added to ResearchAndMarkets.com’s offering.
The global tv market is expected to grow from $91.72 billion in 2021 to $95.98 billion in 2022 at a compound annual growth rate (CAGR) of 4.6%.
The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $105.96 billion in 2026 at a CAGR of 2.5%.
Major players in the TV advertising market are CBS (Columbia Broadcasting System), Comcast Corporation, Viacom Inc., Gray Television Inc., Sinclair Broadcast Group, Sun TV Network, The Walt Disney Company, Time Warner Cable, TV Today Network and Vivendi SA.
The TV advertising market consists of the sales of advertising services by entities (organizations, sole traders and partnerships) that plan, develop, create and manage advertisement and promotional activities on television. Only goods and services traded between entities or sold to end consumers are included.
The main service types of TV advertising are terrestrial, multichannel, and online. Multi-channel advertising refers to the distribution of marketing messages through multiple media channels such as email, social media, print, mobile, display ads and television. The services are delivered through various platforms such as cable television, and satellite television and are broadcasted through advertisement, and subscription. The different time slots include 20 seconds, 60 seconds, and more than 60 seconds.
The low assurance that the advertisement will be viewed and effective is the major obstacle for the TV advertising market. Numerous individuals change the channel when an advertisement comes up during the show break. Additionally, individuals, these days use smartphones during advertisements until their show returns, which results in less consideration towards the promotions.
The increased use of over-the-top (OTT) media services is expected to drive the growth of the TV advertising market. OTT offers reach and retention as the video advertisement is 100% viewable and non-skippable.
For instance, on OTT platforms such as Netflix, Amazon Prime Video, and Disney+, advertisements are non-skippable and is 100% viewed by the subscriber. These advertisements are known as Subscription Supported Video-on-Demand Services. When such ads are viewed by the audience, it reinforces the brand’s message.
The total OTT ad spending amount for 2020 was $990 million. Increased increase is forecast in the coming years, culminating in the $2.373 billion projected OTT ad spending in 2025, suggesting that advertising on streaming services is expanding at rapid speed. Thus, the increased use of over-the-top (OTT) media services is driving the market for TV advertising.
Programmatic TV advertising is increasingly becoming popular in the TV advertising market. Programmatic advertising is the process of purchasing digital advertisements automatically leveraging algorithms and machines. It eliminates human intervention in the advertisement purchasing process, making it quick and less expensive. With the help of programmatic advertising, an organization can publish as many ads a company wants on as many platforms as they desire.
Also, it addresses the requirement for expanded reach of ads as utilization patterns have changed among crowds. Programmatic advertising is associated with programmatic TV sets which allow the audience to watch OTT platforms on TV. For instance, when a person is watching a movie or show on a programmatic TV set, an ad appears in the video player itself. These ads are called in-stream ads which can run as many times as an organizer wants, thus, causing an increase in reach towards the target audience.
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