TV Adspend to Hit $123 Billion This Year

LONDON, March
11: Global net TV ad revenues are set to rise 5.8 percent this year to reach
$123 billion, according to a new report, led in part by the Olympic Games.

The net figures
reflect only what was received by the channels and networks, excluding agency
commissions, production costs and discounts.

The report from
Informa Telecoms & Media, Global Net TV Advertising Forecasts, notes that the projections for this
year are up on the 3.5-percent increase in net TV adspend posted in 2007.

Pay-TV
advertising will bring in $18 billion, the report states, 15 percent of total
net TV advertising in 2008.

By 2012, net TV
ad spend is expected to increase to $148 billion. Pay-TV advertising will grow
at a faster rate, reaching $25 billion in 2012, or 17 percent of the total TV
ad pie.

North America remains
the biggest market, with $46.3 billion in net TV ad revenues, followed by
Western Europe with $32.15 billion. Asia Pacific is the third-largest TV ad
market with $27.7 billion, followed by Latin America ($9.6 billion) and Eastern
Europe and the Middle East ($7 billion).

North America’s
influence over pay TV advertising is even greater than for the total TV market.
It took 62 percent of the total in 2007. This proportion will decline to 53
percent by 2012. The U.K. is the second-largest pay TV advertising market,
contributing $2.2 billion in 2007. Western Europe’s total was $4.4 billion. Net
pay-TV expenditures in Asia Pacific will hit $1.9 billion, $558 million in
Latin America and $331 million in Eastern Europe and the Middle East.

—By
Mansha Daswani