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What the numbers say: Spending on TV advertising has declined for eight consecutive years as a portion of total advertising spending worldwide. The TV advertising segment represented only 25.9% of total ad spending in 2022, down from 40.2% in 2014. Relevance: The global advertising market was worth $615.2B in 2022 and is forecast to reach $834.9B by 2028. Trends in the industry have widespread implications for nearly all business categories, particularly retail, which spends more on advertising than any other industry. The decline in TV advertising overlaps with a sharp rise in corporate spending on internet-based advertising. Companies around the world are expected to spend over $626B on online advertising in 2023, up from $522.5B in 2021. Brands that should care: Companies first started spending money to advertise through television during the Second World War. However, as digital media continues to reinforce its position as the leading source of news and entertainment, retailers may benefit from pivoting toward digital advertising strategies. Firms in the television industry may also consider diversifying their business into digital media or cutting costs to hedge against the effects of declining advertising revenue. |
