Net TV Ad Revenues Forecast To Rise
Global net TV advertising revenues will reach US$123 billion in 2008, up 5.8% on 2007, according to a new report from Informa Telecoms & Media.
| Global net TV advertising forecasts | ||||
| US$ million | 2007 | 2008 | 2009 | 2012 |
| Asia Pacific | 25,857 | 27,705 | 28,811 | 33,134 |
| Europe East/Middle East | 6,203 | 7,037 | 7,829 | 10,321 |
| Europe West | 31,001 | 32,153 | 33,117 | 38,923 |
| Latin America | 8,918 | 9,597 | 10,246 | 12,574 |
| North America | 44,087 | 46,267 | 47,008 | 53,139 |
| Global Total | 116,066 | 122,760 | 127,011 | 148,092 |
| Source: Informa Telecoms & Media | ||||
By 2012, Informa Telecoms & Media forecasts that global net TV advertising will equate to US$148 billion, up 21% on the 2008 figure.
However, Simon Murray, author of the report, said: “Net pay TV advertising will grow at a much faster rate – up 39% over the same period – to reach US$25 billion by 2012, or 17% of total TV advertising.”
Murray stressed that: “These figures are for net advertising. Informa believes that this is the first time that TV advertising forecasts for this many countries (44 in the report) have been homogenised and reflect only the revenues received by the channels and networks.
“We have extracted agency commissions, production costs and, most importantly, we have removed discounts. Traditionally, advertising expenditure figures have been reported at rate card prices – i.e. before discounts have been taken out.”
The US still has considerable influence over the global market, bringing in US$43.2 billion in 2007 – or 35% of the world’s total.
The global average for net television advertising per TV household is running at more than US$100. The US will be highest at US$380 in 2008 and the lowest China, only US$10, and India, US$11.
The UK is the second largest pay TV advertising market, contributing US$2,234 million in 2007. The UK is atypical – there is only one ad-supported channel taking an audience share of more than 10%, though non-ad-supported BBC One also passes this level.
This provides for a healthy pay TV advertising sector as ITV is the dominant TV ad vehicle, Channel Four and Five are minority interest FTA ad-supported channels (each with an audience share of 4-7%) and no other ad-supported channel achieves an audience share above 2%, spreading ad revenues among many channels, said Informa.
| Global net TV advertising forecasts per TV household | ||||
| US$ | 2007 | 2008 | 2009 | 2012 |
| Asia Pacific | 43 | 45 | 46 | 50 |
| Europe East/Middle East | 61 | 68 | 75 | 97 |
| Europe West | 188 | 193 | 197 | 225 |
| Latin America | 98 | 103 | 109 | 127 |
| North America | 352 | 366 | 368 | 404 |
| Global Total | 107 | 112 | 114 | 126 |
| Source: Informa Telecoms & Media | ||||
The UK will boast the highest proportion of pay TV advertising as a proportion of total TV advertising, at about a third in 2008.
| Global net pay TV advertising forecasts | ||||
| US$ million | 2007 | 2008 | 2009 | 2012 |
| Asia Pacific | 1,587 | 1,932 | 2,263 | 3,482 |
| Europe East/Middle East | 331 | 425 | 527 | 857 |
| Europe West | 3,926 | 4,374 | 4,788 | 6,485 |
| Latin America | 460 | 558 | 653 | 986 |
| North America | 10,099 | 10,714 | 11,160 | 13,156 |
| Global Total | 16,402 | 18,004 | 19,389 | 24,966 |
| Source: Informa Telecoms & Media | ||||
A recent forecast from Screen Digest said that the global TV advertising market is set for a tough two years, with the outlook improving from 2010 to 2012 (see Global TV Ad Market Set For Tough Two Years).
The research predicts that 2008 will be a difficult trading year for TV advertising, with spend growing at a lower rate than the economy, at only 1.9% in Europe and 1.5% in the US.