TV Ad Revenues to Surge 38 Percent by 2020

LONDON: Global TV advertising expenditure is expected to reach $236 billion in 2020, up by 38 percent from last year, thanks to spending on the World Cup and economic improvements in much of Europe, according to Digital TV Research.

TV ad spend is forecast to grow by 4 percent in 2014, which is better than the 2.2 percent reported for 2013. TV advertising expenditure will double in Latin America and the Middle East and Africa between 2010 and 2020. Excluding deflation-hit Japan, net TV advertising in the Asia Pacific will also more than double between 2010 and 2020.

TV advertising spend in Western Europe, however, will only be 26 percent higher in 2020 than in 2010. The TV ad market in Western Europe fell in both 2012 and 2013, with 2.7 percent growth expected in 2014. The 2010 total will not be bettered until 2015. Excluding the healthy Russian market, TV advertising in Eastern Europe will fall in 2012, 2013 and 2014. The 2011 total will only be surpassed in 2018.
 
Of the $64.4 billion in TV ad spend to be added between 2013 and 2020, $22.6 billion (35 percent) will come from the U.S., followed by an extra $7.9 billion from China, $3.7 billion from Brazil and $3.1 billion from Japan.
 
The U.S. will remain the global TV advertising market leader by some margin. China overtook Japan to take second place in 2013. TV ad spend will more than double in Brazil between 2010 and 2020, with Russia also nearly doubling. Italy, however, has dropped dramatically and will not recover to the 2010 total by 2020.
 
Multichannel TV advertising expenditure is expected to nearly double to $67.5 billion between 2010 and 2020. The U.S. will contribute $35.2 billion to the 2020 total, followed someway behind by the pan-Arab channels with $5.5 billion. Free-to-air TV advertising expenditure will increase by 34 percent between 2010 and 2020 to $168 billion.

Simon Murray, author of the TV Advertising Forecasts, report, said: “Positives for TV advertising in 2014 include World Cup soccer in Brazil and economic improvement in much of Europe. However, not all countries have fully recovered economically. Devaluation is a factor in some markets, such as Venezuela. In addition, internal conflicts in countries such as Israel, Thailand and the Ukraine have damaged the advertising industry.”