Global Ad Trends: The importance of TV

TV takes up almost two thirds of media spend in high-budget, successful ad campaigns, according to a new WARC service. The Global Ad Trends Report is a monthly series of reports from WARC Data, a dedicated online service featuring current advertising benchmarks, data points, ad trends and user-generated expanded databases.

The first report in the series focuses on TV, and, based on data drawn from analysis of WARC’s extensive database of case studies, concludes that successful high-budget campaigns ($10 million+) allocate some 66 per cent of their media spend to TV.

Additionally, with an increasing budget comes an increased proportion of budget allocated to TV. At the same time, the proportion of budget allocated to digital decreases.

Low-budget campaigns (up to $500k) allocate on average 8 per cent to TV and mid-budget campaigns ($500k to $10 million) spend between 25 per cent to 60 per cent.

The Global Ad Trends report also found that budget allocation to TV has remained consistent in recent years, at approximately two thirds. This tallies with TV’s share of global advertising spend, which has also remained stable.

Data from WARC’s 12 key markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States (which between them account for approximately two-thirds of the value of global ad trade) – show that TV drew 34.9 per cent ($141.8 billion) of global adspend last year, down from a peak of 40.5 per cent in 2010, but representing just a 0.9 point dip over the decade.

Media agencies, meanwhile, expect TV costs to rise in 2018. Data from WARC’s Media Inflation Forecast, a survey of global media agencies, show that the cost-per-thousand (CPM) for a 30-second TV spot is expected to rise by an average 5 per cent on a global basis next year.

Introducing the new service, James McDonald, Data Editor at WARC, noted the importance of “factual and evidenced data” to decision making in advertising.

“With the launch of our monthly Global Ad Trends Report, which is included as part of our newly enhanced data platform, we will provide the latest independent, objective and unbiased information drawn from actual figures rather than modelled or estimated data,” he said.

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