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World Television Market Update
By:
Lawrence Harte
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There are more than 1.7 billion televisions worldwide [ ] (1.2 billion households with televisions [ ]). According to the Financial Times, the amount of commercials watched by each television viewer is approximately 70 per day which is a 16% increase from the number of ads watched in 2001 [ ]. In 2005, the television industry generated more than $151 billion in advertising revenue [ ] and the United States leads the world in television advertising revenue with more than $68 billion per year [ ]. |
Dramatic changes are occurring in the television industry that is reducing the advertising revenue for television broadcasters. Overall spending on advertising is going up while spending on television advertising is decreasing. While some of reduction is due to recording devices such as TiVO and DVRs which allow users to skip over commercials, much of the reduction is a result from the transfer of viewing patterns of users from television program to alternative media forms such as Internet web browsing. |
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Figure 1, Worldwide Media Advertishing 2003-2007 |
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Robert Belt |
+1-480-951-1115 Email: RBelt@IPTVMagazine.com |
| 8 Dec 2006 |
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According to ZenithOptimedia, overall spending in advertising continues to increase at approximately 5% per year which is approximately the same rate as the global economy. Ad spending is divided between newspapers, magazines, television, radio, cinema, outdoor and Internet advertising. Figure 1 shows the total advertising expenditures worldwide in millions. |
In general, spending on advertising is shifting away from broadcast media (newspapers, magazines and television) and moving into interactive media (Internet). Approximately 37% of advertising spending is dedicated to television. Figure 2 shows the division of advertising expenditures for different types of media. |
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Figure 2, Global Advertising Spending by Media Type Source: Zenith Optimedia (www.ZenithOptimedia.com) |
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Copyright 2007 Althos Inc. All rights reserved. |
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