The reach of primetime television “remains unmatched by other media”, according to an analyst at TBI stablemate research group Ovum.
Ed Barton, Ovum’s head of TV practice made the assertion as part of a forecast that suggests TV advertising revenues will grow from the US$174 billion generated last year to US$224 billion in 2020.
“The reach and impact offered by primetime TV remains unmatched by other media,” said Barton. “However the opportunities open to commercial broadcasters and TV service providers are extensive and have to be capitalised upon soon.”
In its forecasts, Ovum singled out the Middle East as an expected “standout performer”, reaching TV advertising revenues of US$11 billion by 2020, with Latin America also making “impressive progress” by bringing in US$26 billion.
Growth in more established TV markets such as North America and western Europe will remain “steady” at US$80 billion and US$34 billion in revenues, respectively, while Asia Pacific (US$66 billion) and eastern Europe (US$8 billion) would experience similar conditions.
“While digital advertising is providing strong competition to TV, the established TV players are innovating and countering threats that would otherwise have led to a much greater level of revenue cannibalisation,” said Ovum’s lead analyst for global TV markets, Adam Thomas.
“However the digital threat is significant and persistent: its impact is being keenly felt in the more mature digital advertising markets such as the US.”
Ovum predicted television would keep its reputation as the “go-to medium for delivering mass audience awareness” would continue through the 2015-2020 period.
“The companies which will control their destinies in 2020 will be those which leverage their relationships with the audience to provide the data and targeting which will transform TV advertising from a blunt knife to a laser guided scalpel,” said Barton.