TV to represent 80% of global video ad spend in the next five years
According to a new report from Strategy Analytics, the majority of budgets are directed towards creating brand awareness to prioritise linear television over online video. Multi-screen access and OTT distribution are helping traditional broadcasters to reach new audiences.
Key highlights of this report include:
- In 2018, global TV ad spend will be over $195B and grow to $201B in the next five years. The U.S, has the largest television advertising marketing, accounting for nearly 36% of global TV ad spend in 2018.
- Digital video will account for only 20% of global video ad spend in 2023, even though it is the fastest growing digital advertising category.
- The UK is the first country to see a total digital eclipse that of TV advertising, leads the pack regarding the digital’s share of total video representing 44% in 2023, followed by the U.S (30%) and China (27%). On a per capita basis, marketers will spend $67.27 per person on digital video advertising in the UK, versus $64.76 in the U.S in 2023.
Michael Goodman, Director, Television & Media Strategies, noted, “With consumers increasingly watching video across platforms, including mobile devices and connected TV screens, audience measurement agencies are evolving their tools, however, cross-device measurement solutions are still geared towards reach-based metrics, and in a fragmented online world, no media can provide reach better than television.”
Nitesh Patel, Director, Wireless Media Strategies, added, “While concerns about brand safety, viewability, fraud, and the impact of GDPR will be address by digital advertisers, traditional TV ad sales will continue to dominate for the foreseeable future.”
Source: Digital TV News