According to Strategy Analytics, the majority of budgets geared toward brand awareness continue to prioritize linear TV over online video, all the more as multiscreen access and over-the-top (OTT) distribution help traditional broadcasters reach new audiences. The research house says major advertisers have shifted ad spend away from digital advertising toward TV, audio and ecommerce, citing digital advertising's lack of efficiency and concerns over brand security and fraud.
Among the findings:
- In 2018, global TV ad spend is expected to be more than $195 billion and grow to $210 billion by 2023. The United States is the largest TV advertising market, accounting for nearly 36% of global TV ad spend in 2018.
- Digital video is expected to represent only 20% of global video ad spend in 2023, despite being the fastest growing digital advertising category (+10.8% 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% in 2023, followed by the United States (30%) and China (27%). On a per capita basis, marketers are expected to spend $67.27 per person on digital video advertising in the UK vs. $65.76 in the United States in 2023.
Michael Goodman, director, Television & Media Strategies, said: "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."
Nitesh Patel, director, Wireless Media Strategies, said: "While concerns about brand safety, viewability, fraud, and the impact of GDPR will be addressed by digital advertisers, traditional TV ad sales will continue to dominate for the foreseeable future."