10 DIC 2019

TV TO SEE ZERO AD REVENUE GROWTH IN THE NEXT THREE YEARS

Much of the sector’s growth is being driven by digital-first brands, digital advertising is increasingly changing the way consumer behave and digest information.

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Traditional TV is set to experience no advertising growth in the next three years. Such sluggishness is due to a weakening global economy and TV audiences turning to streaming services such as Netflix that have reduced available audiences for advertisers and increased fragmentation. While the use of ad-blockers means that many have little exposure to digital advertising. Media prices have risen by an average of 6.5% a year since 2010, while the supply of commercial audiences has shrunk by 1.3% a year. 

Much of the sector’s growth is being driven by digital-first brands, digital advertising is increasingly changing the way consumer behave and digest information – it accounts for 52 percent of the global advertising tracked in the report and 60 percent of total advertising in markets including China, the UK, Sweden, and Denmark.

While the US and China are expected to account for 56% of all growth in ad expenditure over the next three years, Chinese growth is slowing down to an expected 4.1% next year compared with 4.8% in the US. India will be the third biggest contributor to growth, with a growth of 12.4% predicted for next year. Western and Central Europe is expected to see a growth of just 1.7% in ad spend this year, rising to 2.8% in 2022, with weak economic growth contributing to a softening of the market. 

Despite its economic slowdown, the UK ad market is expected to grow by 4.9% next year, up from 3.2% in 2019, driven by strong digital spending. Digital ad spend is expected to account for 71% of the UK total in 2022, making it the first country in the world where digital accounts for over 70% of total ad spend.