Net TV advertising revenues returned to growth in 2010, with a 10.3% expansion year-on-year taking the global value to $143.6 billion, Informa Telecoms & Media said.
While growth is expected to continue in 2011, it is forecast to be fairly limited. Informa Telecoms & Media is forecasting a 3.8% increase in 2011, equating to global revenues of $149 billion.
Analyst Adam Thomas further said that 2010 was followed by “a terrible 2009,” when global net TV advertising revenues declined by 8.1%. Thomas said that the improvement in 2010 was down to several factors, including a better economic situation in most territories, which promoted improved consumer and corporate confidence. The finals of the soccer World Cup also boosted TV advertising.
While growth is expected to continue in 2011, it is forecast to be fairly limited. Informa Telecoms & Media is forecasting a 3.8% increase in 2011, equating to global revenues of $149 billion.
The fairly conservative increase expected by Informa is driven by a perception that the global economic recovery is not yet on a solid footing. The global economy is not however the only factor limiting the ad market. Audiences are being further fragmented by greater programming choice.
This has given advertisers additional channel choice and has also led them to question the rates that they were previously paying to the established players.
Another trend driven by fragmentation is the exporting of thematic channels from established free-to-air players. Several top international brands, such as MTV and CNN, have already set up local services in many countries.