TV ad revenues to hit US$236 billion in 2020

Global TV advertising spend is set to reach US$236 billion in 2020, up by 38% compared to 2013 and by 54% compared to 2010, according to new report by Digital TV Research.

The study, which covers 55 countries around the world, claims that in 2014 alone ad spend will climb by 4%, driven in part by this summer’s World Cup and “economic improvement in much of Europe.”

The biggest TV ad market gains between 2010 and 2020 are tipped to come from Latin America and the Middle East and Africa where ad spend is expected to double.

“Excluding deflation-hit Japan, net TV advertising in Asia Pacific will also more than double between 2010 and 2020,” according to the TV Advertising Forecasts report.

In Western Europe, TV ad spend is expected to climb by 26% between 2010 and 2020. This year, the growth is expected to be 2.7%, following declines in ad spend in both 2012 and 2013.

“The 2010 total [in Western Europe] will not be bettered until 2015. Excluding the booming Russian market, TV advertising in Eastern Europe will fall in 2012, 2013 and 2014. The 2011 total will only be surpassed in 2018,” said the report.

From the US$64.4 billion TV ad spend that is set to be added between 2013 and 2020, Digital TV Research predicts that US$22.6 billion will come from the US, US$7.9 billion from China, US$3.7 billion from Brazil and $3.1 billion from Japan. The US will remain the global TV ad market leader “by some way” according to the report.

Total multichannel TV advertising expenditure is expected to nearly double to US$67.5 billion between 2010 and 2020, while free-to-air TV ad spend will increase by 34% between 2010 and 2020 to US$168 billion.