Global TV Ad Market To Grow By $60 Billion By 2017, Report Says
LONDON – The global television advertising market is to grow by $60 billion by 2017 according to a report from U.K.’s Digital TV Research.
The uptick in fortunes will be fuelled by the so-called quadrennial effect where one year sees US Presidential elections, the summer Olympics in London and the European soccer championship finals in Poland and the Ukraine.
Report author Simon Murray said: “The global TV advertising scenario will be more positive in 2012, by increasing 5.4% to $163 billion.”
He said the big advertising opportunities offered for television covering a triple whammy of big events across the globe will mean an uptick in business.
“However, only five countries will reach double-digit growth in 2012 - and five will experience declines,” Murray said. “Eurozone uncertainty has clouded investment plans in Europe.”
Global TV advertising grew by 3.5% in 2011 to $154 billion, despite the Eurozone crisis which hit Spain, Greece, Ireland and many Eastern European territories the hardest, natural disasters in Japan, Thailand, the Philippines and Turkey and the Arab Spring revolts. In contrast, economic booms in Latin America and Asia Pacific led to significant growth, according to the report.
Global TV advertising expenditure is projected to hit $214 billion in 2017, up 39% - or nearly $60 billion - from 2011.
Television will increase its share of total advertising expenditure, reaching 44.1% in 2017 - up from 41.6% in 2011.
From the $60 billion to be added in TV advertising expenditure between 2011 and 2017, $21 billion will come from the US, followed by an extra $7 billion from China and $4 billion from Brazil. Argentina, India and the Ukraine will all record in excess of 70% growth over the same period, with five more territories exceeding 60%.
The report also outlines that between 2007 and 2017 multichannel TV advertising expenditure will double to $58 billion.
The US will contribute $32 billion to the 2017 total, followed by India and the Pan-Arab region with $3.3 billion each.
More than $40 billion will be added in free-to-air TV ad expenditure between 2011 and 2017 – double the extra spend going to multichannel TV.
The figures cited in the report are net advertising expenditure, that is what the broadcasters actually receive. The report covers 55 territories, which represent 98% of global advertising.