Advances in Technologies Widen Market Opportunities for Television Advertising Use

High definition content and advertisement are a few sources of revenue in the advertisement market. These factors are anticipated to help in the expansion of television broadcasting services market globally. Also, the industry has seen major shift toward consumer driven market from provider-centric market. To meet the expectations of consumer, television broadcasting services market is adopting technological advancements. And the same time they are enhancing the quality standards in device manufacturing to meet the demand of consumers. Nowadays, consumers are demanding high definition of video quality and high quality of content. And as a result of this, HBO Go are becoming popular among the audience.

As the report given by Ericsson Mobility, the rate of purchase of HD TVs has shown an exponential growth. The purchase rate was around 75% in 2012, the value became 85% in the year 2017.

Since televisions serve as the substantial source to reach mass of audience who can be potential customers, brands are focussing on generating revenue through to-the-point advertisements. This in turn is furling the market for television advertising market on wide scale.

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The television advertising market is classified on the basis of revenue model, broadcaster type, delivery platform, and geographic regions.

On standpoint of delivery platforms, the cable television broadcasting service contributed largely in terms of revenue in the expansion of television advertising market. Moreover, demand for satellite television broadcasting service is likely to dominate in the television advertising market in the course of forecast period.

Coming to revenue model, the broadcasting services market is further bifurcated into advertisement and subscription. Subscription segment is likely to contribute largely in the expansion of television advertising market. The segment is projected to grow due to the increasing fashion of on-demand television services and TV subscription. Revenue generated from user-subscription will rise in the course of forecast period.

Global Television Advertising Market: Overview

Advertising has become one of the most important aspect of brand promotion these days. Looking at the cut-throat competition in business sector, companies are investing heavily in the advertising of their products. The vast reach of television has become a major media for promoting their products, hence, television advertising market has picked up major traction these days. Moreover, to attract new customers and retain the existing ones, television advertising market has also become a major benefactor for the businesses. Looking at the major adoption of the television media for advertising the global television advertising market is expected to grow substantially these days.

Trends that Drives the Growth of Global Television Advertising Market:

  • The global television advertising market is majorly driven trend of multi-channel advertising. This means, a single advertisement can be played on multiple channels so that maximum number of audience can reached. Moreover, the demand for educating the audience with the benefits of the products to derive more sales is also an important factor that is propelling the global television advertisement market. Additionally, the growth in the number of several broadcasting channels that can play the commercials also plays a vital role in the growth of global television advertising market in coming years.
  • Demand to reduce the customer churn is also critical aspect that stimulates the businesses to incline towards television advertisings. These advertisements allow the businesses to hold on their existing customers while keep on acquiring new ones. Moreover, the ability to highlight the key features of the products via advertisements on televisions is also a great tool to retain the customers. Owing to these benefits the global television advertising market is expected to witness a major growth in coming years.
  • Asia Pacific is expected to be the most lucrative region for the players of global television advertising market. Looking at the potential of the regions several foreign companies along with local ones are investing in the region for the personal growth of business. Hence, Asia Pacific is projected to witness a substantial growth in global television advertising market in coming years.

Television has been recognized as one of the effective marketing medium which finds a huge acceptance among people across the globe. Different marketing channels are available for advertisers to promote their product or service. However, advertisers look for a marketing channel which can be used to promote to a large number of people with less cost and in more effective way. Thus, advertisers use television to market their product in order to create awareness about their features among consumers. Television advertising can be categorized as traditional commercial channel, multichannel advertising and online TV advertising. Most of the companies prefer traditional channel advertising over online and multi-channel advertising due to its wide adoption by people. The demand for television advertising comes primarily from private sector companies which sells consumer based products. Another source of advertising comes from corporate companies, government and non-governmental organizations. Furthermore, the cost of an advertisement is decided by advertisers and broadcasting channels based on duration of the advertisement. The price may vary depending upon the showcasing time and popularity of the broadcasting show among audience. Therefore, advertisers need to assess the popularity of broadcasting channel before showcasing their advertisements. In addition, advertisers have started to emphasize on precise audience targeting by using consumer-centric data before displaying their advertisement on respective broadcasting channels.

Global television advertisement market is segmented by services, by time slot, and by geography. By services, television advertisement market is segmented into terrestrial advertisement, multichannel advertisement, and online advertisement. Based on time slot, television advertisement market is classified into 20 seconds, 60 seconds, and more than 60 seconds. On the basis of geography, television advertisement market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. Due to more use of consumer goods in developing economies such as India, China and Brazil, there is a growing spending on advertisements for these products. This is expected to drive the growth of television advertisement market in coming years.

Some of the key players in television advertisement include British Broadcasting Corporation, CBS, Comcast Corporation, Viacom Inc., Cox Communication, Gray Television Inc., Sinclair Broadcast Group, Sun TV Network, The Walt Disney Company, Time Warner Cable, Discovery Communications Inc., TV Today Network and Vivendi SA.

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