Analyst: TV to represent 80% of video ad spend

The majority of budgets geared towards brand awareness continue to prioritise linear television over online video, all the more as multi-screen access and OTT distribution help traditional broadcasters reach new audiences, according to a report, Global Advertising Forecast – 2010-2023, from advisory firm Strategy Analytics. As evidence for these forecasts, the research noted that major advertisers have shifted ad spend away from digital advertising towards TV, audio and ecommerce, citing digital advertising’s lack of efficiency and concerns over brand security and fraud.

Key highlights include:

• In 2018, global TV ad spend will be over $195 billion and grow to $210 billion by 2023. The US is the largest television advertising market, accounting for nearly 36 per cent of global TV ad spend in 2018.
• Digital video will represent only 20 per cent of global video ad spend in 2023, despite being the fastest growing digital advertising category (+10.8 per cent CAGR over 2018-2023), reaching nearly $51 billion in 2023.
• The UK, which has been a leader in adoption of digital advertising and was the first country to see total digital advertising eclipse that of TV advertising, leads the pack in terms of digital’s share of total video accounting for 44 per cent in 2023, followed by the US (30 per cent) and China (27 per cent). On a per capita basis, marketers will spend $67.27 per person on digital video advertising in the UK versus $65.76 in the US in 2023.

“With consumers increasingly watching video across platforms, including mobile devices and connected TV screens, audience measurement agencies are evolving their tools, however, cross-device measurement solutions are still geared towards reach-based metrics, and in a fragmented online world, no media can provide reach better than television,” noted Michael Goodman, Director, Television & Media Strategies.

“While concerns about brand safety, viewability, fraud, and the impact of GDPR will be address by digital advertisers, traditional TV ad sales will continue to dominate for the foreseeable future,” added Nitesh Patel, Director, Wireless Media Strategies.

Strategy Analytics uses key supply side inputs for historic performance and future market expectations include ad spend by category and macro-economic conditions. TV advertising includes ad spend on linear broadcast and cable channels while digital video ad spend includes online and mobile.