With new technology and apps on the block every now and then, organisations and their marketing chiefs are struggling to find new ways to give technological access and spread awareness among the consumers. It has been found by ZenithOptimedia that on an average, people spend more than 490 minutes of their day with some sort of media. So it only seems like a calculated decision for the companies to advertise about their product and services via the popular media platforms where they can reach a vast audience efficiently and effectively. The advertising methods have long since evolved and modified and the old media platforms such as newspapers, magazines, television, radio, outdoor advertising or direct mail have been taken over by the new media platforms such as search engines, social media websites, blogs, emails or text messages.
While the consumers across the world continue to invest more in media and entertainment and gain access to different social networking sites, the advertisers are gaining a better insight into the consumers’ buying habits too. Consequently, the advertising companies have significantly increased their expenditure on advertising due to which the growth of the global advertising market has touched new heights. IMARC Group’s estimates further suggest that the global advertising market has grown at a CAGR of around 4% during 2008-2015.
The advertising methods are chiefly implemented across various platforms such as television, print, radio, internet/on-line, outdoor, mobile and cinema. The pace of growth, however, differs considerably across these segments. Among the aforementioned segments, television holds the largest share in the global advertising market and will continue to do so over the next few years.
TV represents the most powerful form of advertising
Ever since TV reached the living rooms of almost every household, it has served as a powerful source of entertainment. It has been observed that among the countries where TV is watched regularly, the Unites States top the charts with an average individual spending over four and a half hours a day in front of the television. Subsequently, television has become one of the most influential forms of advertising for companies. Moreover, the advent of cable television has proved to be a viable option for all types of businesses to target specific markets and areas at low production costs. Currently, the automotive industry represents the largest category that advertises on television followed by hotels & restaurants, communications/telecommunications, insurance & finance and food & beverages.
Some of the advantages of television advertising over other media forms are:
- A convenient and lucrative advertising medium as it reaches a much larger audience than newspapers and radio stations
- Reaches viewers when they are at their most attentive state
- Offers multi-sensory appeal as advertisers are able to incorporate images, sounds and motion which helps to create a strong impact on consumers as well as add credibility to the business, product or service shown in the ad.
- It enables advertisers to be creative and attach a personality to their business, which can be quite effective for small businesses that rely on repeat customers.
The global television advertising market has been divided into three segments: multichannel, terrestrial and online. As of now, terrestrial TV networks continue to be a dominating segment followed by multichannel TV advertising and online TV advertising. Although the share of online TV advertising is considerably low, it is found to be the fastest growing segment in this market. Analysing the major regional markets in television advertising, North America has been found to represent the biggest market followed by Asia Pacific, Western Europe, Latin America, Eastern Europe and the Middle East and Africa. The Middle East and Africa, Eastern Europe and Latin America currently represent the three fastest growing regions.
Despite a rapid growth in digital media platforms, Television advertising will continue to hold its dominance
Although the surge of internet and digital media platforms have rapidly penetrated the lives of people and increased their daily consumption of online media content, television is still, by far, a popular entertainment media. Furthermore, the penetration of televisions are expected to increase continuously, particularly in emerging markets such as India, China, the Middle East, Africa, Eastern Europe and Latin America where disposable incomes are expected to increase constantly. As a result, IMARC Group expects television advertising market to continue its dominance in the global advertising market over the next few years.
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