TV Adspend to Surge and Hit up $214bn by 2017 [Report]

Analysts based on a report from Digital TV Research, using rate card data from 55 territories, stated that due to the “quadrennial effect” of events happening next year like the Olympic Games, the TV advertising market will experience strong growth during the period.

The report went on to suggest that global adspend in the TV category will hit up $163bn in 2012, a figure shifting up 5.4% from the year before. It also made predictions that the annual increase for 2011 will stand at 3.5%.

“The advertising industry is boosted [in 2012] by the US Presidential elections, the summer Olympics in London and the Euro soccer championships in Poland and the Ukraine,” said Simon Murray, the author of the report.

When taking a medium term perspective, it’s likely that the significant growth will be maintained along with the overall spend for the channel forecasted to hit up $214bn during the next six years to 2017, an increase of 39% from this year’s total.

The “quadrennial effect” would balance off and lead to growth in the coming years where the outlook of the economic conditions will be volatile as well as the disruptive effects of the digital revolution, the report added.

What is more likely to provide a significant increase in expenditure are the emerging markets that are relatively not hurt by the downturn, along with many of them yet relying on the traditional mediums than those mature markets.

Having to surpass Japan as the second-largest TV market in the world during 2013 is China according to the Digital TV Research report especially due to the country’s rapid growth in the category. However overall, in some mature markets, there will be an impact on the adspend levels due to the economic difficulties.

Commenting on the above, Murray further added that “Only five countries will reach double-digit growth in 2012 – and five will experience declines. Eurozone uncertainty has clouded investment plans in Europe.”

On the bright side, however, its result is an improvement from 2011 as this year experienced a downward shift towards expenditures among 12 nations, mostly in the eastern European region. The majority of the growth in adspend is expected to be provided by free-to-air TV buys, when taking a step forward in the next five years, where this sector will shift up by $40bn to 2017, a figure that is double the $20bn extra spend on multichannel TV.

Data sourced from Digital TV Research; additional content by MP Staff