Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Australia

Australia

Ad spending in the Traditional TV Advertising market in Australia is forecasted to reach €2.13bn in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.28%, leading to a projected market volume of €2.16bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Australia is estimated to be €112.40 in 2024.
In the Traditional TV Advertising market in Australia, the number of users is predicted to reach 20.0m users by 2029.
Traditional TV advertising in Australia is experiencing a gradual decline in viewership and effectiveness due to the increasing popularity of online streaming platforms.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Australia is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Australia are playing a crucial role in shaping the Traditional TV Advertising market. Despite the rise of digital platforms and streaming services, traditional TV still holds a strong position in the country. Many Australians prefer watching their favorite shows and programs on television, creating a demand for TV advertising. Additionally, TV advertising allows for a passive viewing experience, which appeals to a wide range of audiences. Trends in the market are also contributing to the growth of Traditional TV Advertising in Australia. Advertisers are recognizing the effectiveness of TV advertising in reaching a large and diverse audience. They are investing in TV advertising to maximize their brand exposure and increase their market share. Furthermore, the availability of advanced targeting and measurement technologies enables advertisers to optimize their TV ad campaigns, making it a more attractive option for businesses. Local special circumstances in Australia further support the development of the Traditional TV Advertising market. The country has a well-established broadcasting industry with a wide range of TV channels catering to different demographics. This diversity allows advertisers to target specific audience segments and tailor their messages accordingly. Additionally, the Australian government has implemented regulations that ensure fair competition in the TV advertising market, fostering a healthy and competitive environment for advertisers. Underlying macroeconomic factors also play a role in the growth of the Traditional TV Advertising market in Australia. The country's stable economy and high consumer spending power provide a favorable environment for advertisers. Businesses are willing to invest in TV advertising to capitalize on the strong consumer demand and drive sales. Moreover, the Australian TV industry has seen a rise in international partnerships and collaborations, attracting global brands to advertise on Australian TV channels. In conclusion, the Traditional TV Advertising market in Australia is experiencing growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The continued popularity of traditional TV, coupled with the effectiveness of TV advertising in reaching a wide audience, drives the demand for TV advertising. The diverse range of TV channels and fair competition regulations create a conducive environment for advertisers. Furthermore, Australia's stable economy and high consumer spending power provide opportunities for businesses to invest in TV advertising.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.