TV Adspend In Western Europe To Increase By 2.2% In 2006

Despite television steadily increasing its share of Western European advertising expenditure over past years, ZenithOptimedia claims that TV’s share of adspend is levelling off as the internet takes over as the up-and-coming advertising medium.

The report reveals that TV increased its share of total adspend from 24% in 1991, to 32% in 2005, with share expected to remain static at 32% by 2014.

Looking more specifically at television platforms, cable is expected to remain the more dominant medium. Although most satellite TV in Western Europe is now digital, just 13% of cable households receive digital services.

ZenithOptimedia attributes this to the expense of upgrading cable systems and lack of demand for digital cable in markets where viewers are used to receiving cheap analogue packages. Overall, digital pay-TV penetration is predicted to increase to 43.0% of all Western European households by 2014.

Last year, Informa Telecoms & Media forecast digital TV in Western Europe to rise by 25% in 2005, reaching 25.8 million by the end of the year and surpassing the 50 million mark in 2006 (see Digital TV In Western Europe Up 25% In 2005).

Informa expects the number of digital subscribers to more than double over the next five years, hitting just under 100 million by 2010.

The UK is expected to lead Western Europe in terms of digital television penetration, predicted to account for almost 35% of the region’s digital total by the end of the year. France is forecast to enjoy a share of 15.3%, with Germany and Italy both at 13.7%.

The latest figures from Ofcom claim that, in December 2005, 65.9% of UK households watch digital TV, up from 63.0% the previous quarter. (see Ofcom Estimates Show 65.9% Of Britain With Digital TV).