Warc has released its first Global Ad Trends Report, based on analyses of more than 600 case studies in its database. This one focusses on TV.
The first Global Ad Trends finding is that TV takes up almost two-thirds of the media spend in high budget successful brand ad campaigns. High-budget campaigns continue to focus on TV, despite the rise of digital. Successful high-budget campaigns ($10m+) allocate, on average, 66% of their media spend to TV.
It also found that with an increasing budget comes an increased proportion of budget allocated to TV. At the same time, the proportion of budget allocated to digital decreases. Low budget campaigns (up to $500k) allocate on average 8% on TV and mid-budget campaigns ($500k to $10m) spend between 25% to 60%.
Budget allocation to TV has remained consistent in recent years, at approximately two-thirds. This tallies with TV’s share of global advertising spend, which has also remained stable over the period. Financial services and alcoholic drinks brands are most TV-led.
The third finding is that TV draws 35% of the global advertising spend.
Data from WARC’s 12 key markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States – which between them account for approximately two-thirds of the value of global ad trade, show that TV drew 34.9% ($141.8bn) of global adspend last year. This is down from a peak of 40.5% in 2010, but is just a 0.9 point dip across the decade.
The fourth is that media agencies expect TV costs to rise in 2018. Data from WARC’s Media Inflation Forecast, a survey of global media agencies, show that the cost-per-thousand (CPM) for a 30-second TV spot is expected to rise by an average 5% on a global basis next year.
TV CPM in the US, the world’s largest market, is anticipated to rise with the global average. In developing markets, namely India and China, it is predicted to rise well ahead of the global average.
In short, TV accounts for:
- 24% of daily media consumption
- 35% of global advertising spend
- 47% of global display adspend
- 66% of successful, high-budget campaigns
- 88% of global video spend
Global Ad Trends is part of Warc Data, its online service featuring current advertising benchmarks, data points, ad trends and user-generated expanded databases, which is available by subscription. https://www.warc.com/data
Other new key media intelligence on WARC Data includes:
- Facebook’s attainable user penetration nears 50%
- Martech is a $34bn industry in the UK and US
- WARC’s own International Forecast shows Global adspend is expected to rise 5.0% in 2017 and 5.9% in 2018 (PPP)
- Mobile expected to account for 92% of global digital adspend growth this year
- Russia (+10.6%), India (+10.4%), China (+8.2%) and Australia (+7.3%) ad markets to grow fastest this year and next
- Marketing budgets continued to grow in Europe during October 2017, but showed weakness in APAC and Americas
James McDonald, data editor, WARC, commented, “The advertising industry increasingly relies on factual and evidenced data to make business decisions on a daily basis. With the launch of our monthly Global Ad Trends Report, which is included as part of our newly enhanced data platform, we will provide the latest independent, objective and unbiased information drawn from actual figures rather than modelled or estimated data.”