Global TV ad spend will be over $195 billion in 2018 and grow to $210 billion by 2023, a Strategy Analytics report said.
The research report said that major advertisers have shifted ad spend away from digital advertising towards TV, audio and ecommerce, citing digital advertising’s lack of efficiency and concerns over brand security and fraud.
The U.S. is the largest television advertising market, accounting for nearly 36 percent of global TV ad spend in 2018.
The report indicates significant setback for digital advertising platforms such as Google, Facebook, Twitter, and several digital media publications.
Digital video will represent 20 percent of global video ad spend in 2023, despite being the fastest growing digital advertising category (+10.8 percent CAGR over 2018-2023), reaching nearly $51 billion in 2023.
U.K., 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 percent in 2023, followed by the U.S. (30 percent) and China (27 percent).
On a per capita basis, marketers will spend $67.27 per person on digital video advertising in the U.K. versus $65.76 in the U.S. in 2023.
Audience measurement agencies are evolving their tools to measure watching pattern among consumers, who are increasingly watching video across platforms, including mobile devices and connected TV screens.
Cross-device measurement solutions are still geared towards reach-based metrics. “No media can provide reach better than television in a fragmented online world,” Michael Goodman, director, Television & Media Strategies at Strategy Analytics, said.
Nitesh Patel, director, Wireless Media Strategies, said traditional TV ad sales will continue to dominate for the foreseeable future, while concerns about brand safety, viewability, fraud, and the impact of GDPR will be address by digital advertisers.