TV to represent four-fifths of global video ad spend by 2023
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Joseph O'Halloran
| 30 October 2018

Research from Strategy Analytics is reminding the industry to dust off the perennial paraphrasing of Mark Twain: despite the surge in online video uptake, reports of the death of TV are somewhat exaggerated.


The Strategy Analytics, Global Advertising Forecast – 2010-2023 found that the majority of budgets geared towards brand awareness continue to prioritise linear television over online video, even though multiscreen access and OTT distribution are helping traditional broadcasters reach new audiences. in addition, the research noted that major advertisers have shifted ad spend away from digital advertising towards TV, audio and ecommerce, citing digital advertising’s lack of efficiency and concerns over brand security and fraud.

In all Strategy Analytics forecast that by the end of 2018, global TV ad spend will be over $195 billion and grow to $210 billion by 2023. The US. is the largest television advertising market, accounting for nearly 36% of global TV ad spend in 2018.

Territorially, 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, was found to be the leader in terms of digital’s share of total video accounting for 44% in 2023, followed by the US (30%) and China (27%). On a per capita basis, marketers will spend $67.27 per person on digital video advertising in the UK versus $65.76 in the US in 2023.

Yet despite the massive uptake of the likes of Netflix and Amazon — and also despite being the fastest growing digital advertising category with projected 10.8% CAGR over 2018-2023 to reach a value of nearly $51 billion — the research also revealed that digital video will likely represent only 20% of global video ad spend in 2023. Indeed, Strategy Analytics concluded that 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.

Commenting on the Global Advertising Forecast – 2010-2023 report, Michael Goodman, director, television and 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.”