July 19, 2024
Ict

TV Ad Spending Market Growth Accelerated by the Rise of Connected TV Ad Spending

Television advertising spending or TV ad spending refers to the money spent by brands and companies to promote their products and services on television mediums. TV ads allow advertisers to target mass audiences with multimedia messaging. With the growing popularity of connected devices and streaming platforms, viewers are shifting from traditional TV to streaming on their laptops and smartphones. This change in viewership habits has boosted connected TV or CTV ad spending.

The global TV Ad Spending Market is estimated to be valued at US$ 130.22 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Connected TV or CTV refers to television sets and devices that are connected to the internet. Users can watch both live and on-demand content through streaming platforms on their CTV devices. This has allowed advertisers to target their ads to specific audiences based on their interests, spending habits and location. With more people cutting the cord and switching to streaming, CTV ad spending has grown significantly over the recent years. It is driving significant growth in the overall TV ad spending market. According to reports, CTV ad spending in the US grew by more than 90% in 2021. The trend is expected to further accelerate driven by the increasing integration of addressable advertising and advanced targeting capabilities on streaming platforms.

Segment Analysis
The TV ad spending market is dominated by connected TV segment which accounts for more than 35% share of the total market. This is mainly because of shift of audience preference toward streaming platforms for entertainment purposes. Connected TV provides personalized and targeted advertising to viewers based on their preferences which helps advertisers to reach the right audience easily.

Key players operating in the TV ad spending market are Procter & Gamble, Amazon, Comcast, AT&T, General Motors, Verizon Communications, L’OrĂ©al, The Walt Disney Company, Ford Motor Company, Samsung Electronics, Unilever, Toyota Motor Corporation, NBCUniversal (owned by Comcast), Alphabet Inc. (Google), Johnson & Johnson. Procter & Gamble accounts for largest share owing to its diverse brand portfolio and extensive spending on TV ads globally. Comcast and AT&T also have substantial presence in the TV ad spending market through their media networks like NBC and WarnerMedia.

Regional analysis: The North America TV ad spending market accounted for largest share of over 35% in 2023 owing to presence of leading advertisers such as Procter & Gamble, Comcast, AT&T, General Motors, Verizon Communications, Unilever, Johnson & Johnson and others in the region. These companies significantly invest in TV advertising to promote their brands. Asia Pacific is projected to grow at fastest CAGR during the forecast period driven by countries such as China and India. Rapid economic development and rising disposable income in these countries have encouraged companies to increase their marketing and promotional activities through TV ads.

Key Takeaways

The global TV Ad Spending Market is expected to witness high growth. North America currently dominates the market due to high spending on TV ads by prominent players across various sectors. However, Asia Pacific is expected to emerge as the fastest growing region owing to rising spending by domestic and multinational companies to tap the growing customer base in major countries like China and India.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it