Global TV adspend to grow 6.4% this year
Magna Global’s latest global television advertising forecast predicts 6.4% growth in constant currency terms during 2010, to $150.7 billion dollars worldwide.
Over the next five years, it expects the global television industry’s advertising revenues to grow by 5.4% each year on average.
Latin America is predicted to be the fastest growing part of the world over the next five years, with $16.4 billion of total supplier advertising revenue by 2015 following an average rate of 8.9% growth over the next five years.
Among specific countries, Argentina will be the fastest growing television advertising market with 16.5% growth in domestic currency terms and 17.8% growth in dynamic USD terms.
Despite being a hot topic at the moment, Magna says that neither online video, internet-connected TV sets, nor advanced advertising services are likely to be major factors in television advertising through the foreseeable future.
“Online video will not challenge traditional TV because the tonnage of consumption remains very small even for the most popular of programs. Internet-connected TV sets are unlikely to change viewing for many reasons, including a lack of scale (because the sheer numbers of these sets will remain in the minority for many years) and the difficulty most consumers will find in using them (most TV set web interfaces will not be integrated with the primary video service provider’s interface or program guide).
“Advanced advertising capabilities are typically only enabled within a small subset of programming and a small subset of homes, and the presence of differing and incompatible technologies may require advertisers to develop the same application or creative asset many times.”
Leichtman Research Group recently reported that around 25% of all US TV households have a television connected to the internet, while The Nielsen Company’s latest Three Screen Report revealed that simultaneous use of the internet while watching TV hit three and a half hours a month in the US in the last quarter of 2009 – up 35% year on year.