TV advertising spend expected to increase by 33.1% this year
Advertising spend on linear TV in the US was growing quickly in 2018 (50.7%) and 2019 (36.5%), this was expected to continue through 2020 but the pandemic slowed down this spend which saw just a 7.3% growth.
TV ad spend is predicted to pick up this growth pattern this year with a projected increase of 33.1% to $2.85 billion with further predictions showing a 4 billion annual spend by the end of 2023.
Linear TV is defined as TV ads delivered via cable and satellite including VOD content accessed through a pay TV login.
Though ad spend is growing there are difficulties ahead for TV networks selling ad inventory due to the way viewers are consuming their TV watching. The number of linear TV households in the US are likely to shrink by 4.7% to fewer than 60 million in 2021 because consumers are leaving cable and satellite packages.
This will lead to less ad inventory available and TV networks and stakeholders compensating by increasing the share of traditional TV inventory that is addressable and by standardising it’s measurement.
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