Linear TV still dominates video ad spending

Oct. 30, 2018
According to Strategy Analytics, the majority of budgets geared toward brand awareness continue to prioritize linear TV over online video, all ...

According to Strategy Analytics, the majority of budgets geared toward brand awareness continue to prioritize linear TV over online video, all the more as multiscreen access and over-the-top (OTT) distribution help traditional broadcasters reach new audiences. The research house says major advertisers have shifted ad spend away from digital advertising toward TV, audio and ecommerce, citing digital advertising's lack of efficiency and concerns over brand security and fraud.

Among the findings:

  • In 2018, global TV ad spend is expected to be more than $195 billion and grow to $210 billion by 2023. The United States is the largest TV advertising market, accounting for nearly 36% of global TV ad spend in 2018.
  • Digital video is expected to represent only 20% of global video ad spend in 2023, despite being the fastest growing digital advertising category (+10.8% CAGR over 2018-2023), reaching nearly $51 billion in 2023.
  • The UK, which has been a leader in adoption of digital advertising and was the first country to see total digital advertising eclipse that of TV advertising, leads the pack in terms of digital's share of total video, accounting for 44% in 2023, followed by the United States (30%) and China (27%). On a per capita basis, marketers are expected to spend $67.27 per person on digital video advertising in the UK vs. $65.76 in the United States in 2023.

Michael Goodman, director, Television & Media Strategies, said: "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, said: "While concerns about brand safety, viewability, fraud, and the impact of GDPR will be addressed by digital advertisers, traditional TV ad sales will continue to dominate for the foreseeable future."

About the Author

BTR Staff

EDITORIAL
STEPHEN HARDY
Editorial Director and Associate Publisher
[email protected]
MATT VINCENT
Senior Editor
[email protected]
SALES
KRISTINE COLLINS
Business Solutions Manager
(312) 350-0452
[email protected]
JEAN LAUTER
Business Solutions Manager
(516) 695-3899
[email protected]

Sponsored Recommendations

The Pluggable Transceiver Revolution

May 30, 2024
Discover the revolution of pluggable transceivers in our upcoming webinar, where we delve into the advancements propelling 400G and 800G coherent optics. Learn how these innovations...

The Journey to 1.6 Terabit Ethernet

May 24, 2024
Embark on a journey into the future of connectivity as the leaders of the IEEE P802.3dj Task Force unveil the groundbreaking strides towards 1.6 Terabit Ethernet, revolutionizing...

From 100G to 1.6T: Navigating Timing in the New Era of High-Speed Optical Networks

Feb. 19, 2024
Discover the dynamic landscape of hyperscale data centers as they embrace accelerated AI/ML growth, propelling a transition from 100G to 400G and even 800G optical connectivity...

Balanced vs. Unbalanced PON: Key Differences and Deployment Impact

Nov. 7, 2023
Learn how to choose the right PON architecture for your network.