More joining the fight for TV ad dollars
Television media is changing as audiences shift from linear TV to connected TV. At $143.9bn, linear TV represents just 12.4% of global ad spend this year, down from 41.3% in 2013. Big tech, retail media and smart TV have joined the fight for TV ad dollars, further fracturing an already fragmented market, according to marketing company WARC’s global advertising trend.
The report stresses that viewing of YouTube content on TV devices is rising, especially in markets like the US.
“The largest brands in the world spend on average 38% of ad budgets on TV; among smaller brands, that falls to 9%.”
Other key trends:
- Particular younger viewers are shifting from linear to streaming.
- CTV ad spend is rising globally, but growth remains US-centric.
- YouTube earned $36bn in ad sales in the US, rivalling legacy TV.
“As consumers move seamlessly from one form of video to the next, advertisers are being challenged to reappraise how they define TV – be it a specific type of video ad format, a media owner or simply the largest screen in the home – with important implications for planning and buying, frequency management and measurement”, says Alex Brownsell, head of content at WARC Media.
The report says that between 2014 and 2024, linear TV ad spend worldwide declined by 27.5% in absolute terms – extending to a 50.8% drop when adjusting for inflation.
Linear TV still commands more than three-quarters of all TV investment, however, increasingly brands are rebalancing TV spend towards CTV, which now accounts for nearly half of all TV usage in the US, the report says.
The total video market – excluding social video and YouTube – is forecast to take a 15.9% share of spend in 2025. Linear TV now represents just 12.4% of total ad spend ($143.9bn), down from 41.3% in 2013 and is expected to drop to 11.3% next year to $139.1bn – the lowest since 2005.
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