THIS may not be the best of times for investors and players in the global broadcast space, as television, a popular means of information dissemination in the broadcast space is said to be witnessing a continued downturn in its advertisements incomes, globally.
Data, released recently, by StockApps.com, a leading financial educational hub for investors, revealed that though TV advert spending accounts for 28.3% of the global advert budget, in the year 2021, but the figure represents a 2.6% drop from 2020’s totals.
The report added that TV, which had, over the years, been a key ally to the advertising industry, no longer represents the dominant source of news and entertainment, globally, especially with the proliferation of other news media, occasioned by the internet and technology.
The reasons, the report says, may not be far-fetched. For instance, one of the factors identified as responsible, for such slump in tv ads revenue is the change in the way people now consume news. Gone were the days the television sets used to be the only source of information dissemination, in that category. With their hand-held devices, the hitherto loyal tv subscribers, seem to be gradually getting other options, apart from staying glued to their tv sets.
“In recent years, people’s viewing habits have switched to on-demand programming. Consequently, global TV ad expenditure has been steadily dropping,” argued Stockapps.com’s Edith Reads, a fintech expert and trader.
She also identified globalization as another major issue affecting TV advertisements; since most people prefer to advertise their products on social sites, search engines, or short videos on various handles of influencers.
“The major issue that affects TV ads is the world’s digitalization. Most people prefer to advertise their products on social sites, search engines, or short videos on various handles of influencers. Therefore, it is not surprising to see the continuous decline in TV global ads,” Reads added.
The report however does not foreclose the opportunities for players in that space to make amends and reap bountifully, at the end of 2022.
Such hope is hinged on the world sports calendar, which the report says, might drive the share up, with major sporting activities having television broadcasts.
“This year’s sports calendar is a very active one. The sporting events will increase TV viewers across various populations, especially young adults. These events will then pull marketers who might capitalize on the viewership to advertise their products.
“Sporting events like the UEFA European Football Championships, the Qatar Worldcup, Winter Paralympics, and the Commonwealth Games are likely to drive TV commercial spending. Growth in 2022 is predicted to return to pre-pandemic spending levels,” the report added.
Is Nigeria immune?
Interestingly, the nation’s broadcast space seems not immune to this development. For instance, online ads proliferation seems to be gradually eating into the revenue of the tv, in this part of the world.
According to a PwC report, while television advertisement will remain the ad leader in Nigeria by 2023, internet ad will however outperform tv ads in terms of net additions.
For instance, the report put amount spent on traditional tv ad in Nigeria, at $275million in 2020, making it a decrease of about $26million compared to 2019. The lion share of about $191m was said to have been spent on digital terrestrial advertisement.
All hope seems not lost however. And one of the premises of such optimism is the general belief that the efforts of the federal government to digitize the nation’s broadcast space will go a long way in opening up the space, and presents it with a new world of ad opportunities.
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and then