Advertising: TV versus OTT - The future of commercial TV channels in the age of OTT migration
Commercial TV channels are facing a twin threat: the migration of both viewers and advertisers to the Internet. Television is still the medium that best withstands the advance of the Internet, but the fall in TV time, particularly amongst young adults, and the effectiveness of Internet advertising have raised fears of a reversal of the TV ad market that would threaten the survival of the commercial channels.
This IDATE DigiWorld study explores the strategies implemented by the main players in the main advanced markets in response to this risk. It identifies four categories of countries and analyses the differences between the developments expected in each category.
It gives estimates of the TV advertising market for 2024, allowing for the development of new activities by the channels in relation to OTT and targeted advertising.
The market analysis is performed according to major geographical region and for the key markets of those regions:
This IDATE DigiWorld study explores the strategies implemented by the main players in the main advanced markets in response to this risk. It identifies four categories of countries and analyses the differences between the developments expected in each category.
It gives estimates of the TV advertising market for 2024, allowing for the development of new activities by the channels in relation to OTT and targeted advertising.
The market analysis is performed according to major geographical region and for the key markets of those regions:
- North America (USA)
- Europe (Germany, Spain, France, Italy, United Kingdom, Sweden)
- Africa/Middle East
- Asia/Pacific
- Latin America
- Traditional TV (mass media)
- Addressable TV (targeting on the TV via operators’ STB)
- Connected TV (targeting on the TV via open Internet)
- On-demand TV (targeting on other Internet-connected devices)
1. EXECUTIVE SUMMARY
1.1. A tense commercial television sector
1.2. Commercial channels develop four strategic priorities to deal with changes in the market
1.3. Commercial TV has the resources to withstand the changes in the market
2. GLOBAL CHANGE IN THE AUDIOVISUAL INDUSTRY
2.1. Advertising market dynamics
2.2. An advertising market that reflects the changing consumption
2.3. …and takes advantage of the benefits of the Internet
2.4. A necessary reaction by the commercial TV channels
3. THE STRATEGIES OF THE COMMERCIAL TV CHANNELS
3.1. France
3.1.1. Overall dynamic of the television market in France
3.1.2. TF1
3.1.3. M6
3.2. Spain
3.2.1. Overall dynamic of the television market
3.2.2. Atresmedia
3.3. Italy
3.3.1. Overall dynamic of the television market
3.3.2. Mediaset
3.4. Germany
3.4.1. Overall dynamic of the television market
3.4.2. ProSiebenSat.1
3.5. United Kingdom
3.5.1. Overall dynamic of the television market
3.5.2. ITV
3.6. United States
3.6.1. Overall dynamic of the television market
3.6.2. Disney
3.7. Sweden
3.7.1. Overall dynamic of the television market
3.7.2. MTG/NENT
3.8. Comparison of commercial TV channel strategies
3.8.1. Comparison of commercial groups’ OTT approaches
3.8.2. Comparison of programmatic advertising developments for TV and online
3.8.3. Commercial channel strategies to deal with market changes
4. OUTLOOK FOR COMMERCIAL TV
4.1. Outlook for changes in commercial TV
4.2. Market forecasts
4.3. Commercial TV has the resources to withstand market changes
1.1. A tense commercial television sector
1.2. Commercial channels develop four strategic priorities to deal with changes in the market
1.3. Commercial TV has the resources to withstand the changes in the market
2. GLOBAL CHANGE IN THE AUDIOVISUAL INDUSTRY
2.1. Advertising market dynamics
2.2. An advertising market that reflects the changing consumption
2.3. …and takes advantage of the benefits of the Internet
2.4. A necessary reaction by the commercial TV channels
3. THE STRATEGIES OF THE COMMERCIAL TV CHANNELS
3.1. France
3.1.1. Overall dynamic of the television market in France
3.1.2. TF1
3.1.3. M6
3.2. Spain
3.2.1. Overall dynamic of the television market
3.2.2. Atresmedia
3.3. Italy
3.3.1. Overall dynamic of the television market
3.3.2. Mediaset
3.4. Germany
3.4.1. Overall dynamic of the television market
3.4.2. ProSiebenSat.1
3.5. United Kingdom
3.5.1. Overall dynamic of the television market
3.5.2. ITV
3.6. United States
3.6.1. Overall dynamic of the television market
3.6.2. Disney
3.7. Sweden
3.7.1. Overall dynamic of the television market
3.7.2. MTG/NENT
3.8. Comparison of commercial TV channel strategies
3.8.1. Comparison of commercial groups’ OTT approaches
3.8.2. Comparison of programmatic advertising developments for TV and online
3.8.3. Commercial channel strategies to deal with market changes
4. OUTLOOK FOR COMMERCIAL TV
4.1. Outlook for changes in commercial TV
4.2. Market forecasts
4.3. Commercial TV has the resources to withstand market changes
LIST OF TABLES AND FIGURES
1. Executive summary
Advertising income of the main media from 2010 to 2019
Average time spent watching linear and nonlinear TV worldwide
Growth of worldwide advertising revenue by origin from 2018 to 2024
2. Global change in the audiovisual industry
Advertising revenue of the main media from 2010 to 2019
Proportion of the main media in the worldwide advertising market
Annual change in TV advertising revenue by region between 2010 and 2019 and between 2018 and 2019
Change in growth rate of TV advertising revenue in a selection of mature countries between 2011 and 2019
Growth in programmatic advertising on the Internet between 2014 and 2019
Share of mobile advertising as part of Internet advertising earnings
The worldwide trend of linear TV watching time between 2014 and 2018
Change in penetration rate of TV in homes by zone, between 2014 and 2019
Difference between TV penetration rate in homes for a selection of advanced markets in 2014 and 2019
Comparison of time spent per day on TV and on Internet (all uses together) worldwide in 2018
Average time spent watching linear and nonlinear TV worldwide
How the positioning of commercial channels is moving towards OTT
Degree of diversification of commercial channels within OTT
3. Strategies of the commercial TV channels
TV audience share in France among viewers aged 4 and over
Change in television viewing time per viewer in France
Distribution of the income from TF1 Group activities
Change in TF1 revenue and operating margin
Share of advertising in TF1 Group revenue
TF1 audience share in France among viewers aged 4 and over
Distribution of M6 Group revenue by division
Change in M6 Group revenue and operating margin
Share of advertising in M6 Group revenue
M6 audience share in France among viewers aged 4 and over
Television audience share in Spain
Change in television viewing time per viewer in Spain
Breakdown of Atresmedia group revenue
Change in Atresmedia revenue and operating margin
Share of advertising in Atresmedia group revenue
Antena 3 audience share among viewers aged 4 and over
Change in Atresmedia economic model
Television audience share in Italy
Change in television viewing time per viewer in Italy
Change in Mediaset group revenue and operating margin
Share of advertising in Mediaset group revenue
Canale 5 audience share among viewers aged 4 and over
Television audience share in Germany
Change in television viewing time per viewer in Germany
Breakdown of ProSiebenSat.1 group revenue by division
Change in ProSiebenSat.1 group revenue and operating margin
Share of advertising in ProSiebenSat.1 group revenue
SAT 1 audience share among viewers aged 4 and over
Television audience share in the United Kingdom
Change in television viewing time per viewer in the United Kingdom
Breakdown of ITV group revenue by division
Change in ITV group revenue and operating margin
Share of advertising in ITV group revenue
ITV audience share among viewers aged 4 and over
Television audience share in the United States
Change in television viewing time per viewer in the United States
Breakdown of Disney group revenue by income source
Change in Disney group revenue and operating margin
Share of advertising in Disney group revenue
ABC audience share among viewers aged 4 and over
Television audience share in Sweden
Change in television viewing time per viewer in Sweden
Breakdown of MTG group revenue by income source
Change in MTG group revenue and operating margin
Share of advertising in MTG group revenue
TV3 audience share among viewers aged 4 and over
Forecast change in TV3 audience among viewers aged 4 and over
4. Outlook for commercial TV
Change in all TV advertising earnings in Sweden between 2018 and 2024
Change in all TV advertising earnings in the United States between 2018 and 2024
Change in all TV advertising earnings in the United Kingdom between 2018 and 2024
Change in all TV advertising earnings in Germany between 2018 and 2024
Change in all TV advertising earnings in France between 2018 and 2024
Change in all TV advertising earnings in Italy between 2018 and 2024
Change in all TV advertising earnings in Spain between 2018 and 2024
Change in all TV advertising earnings in the world by source between 2018 and 2024
Change in new TV advertising earnings between 2018 and 2024
Change in addressable TV earnings by region between 2018 and 2024
Change in on-demand TV earnings by region between 2018 and 2024
Change in connected TV earnings by region between 2018 and 2024
Change of strategic positioning of commercial audiovisual groups
1. Executive summary
Advertising income of the main media from 2010 to 2019
Average time spent watching linear and nonlinear TV worldwide
Growth of worldwide advertising revenue by origin from 2018 to 2024
2. Global change in the audiovisual industry
Advertising revenue of the main media from 2010 to 2019
Proportion of the main media in the worldwide advertising market
Annual change in TV advertising revenue by region between 2010 and 2019 and between 2018 and 2019
Change in growth rate of TV advertising revenue in a selection of mature countries between 2011 and 2019
Growth in programmatic advertising on the Internet between 2014 and 2019
Share of mobile advertising as part of Internet advertising earnings
The worldwide trend of linear TV watching time between 2014 and 2018
Change in penetration rate of TV in homes by zone, between 2014 and 2019
Difference between TV penetration rate in homes for a selection of advanced markets in 2014 and 2019
Comparison of time spent per day on TV and on Internet (all uses together) worldwide in 2018
Average time spent watching linear and nonlinear TV worldwide
How the positioning of commercial channels is moving towards OTT
Degree of diversification of commercial channels within OTT
3. Strategies of the commercial TV channels
TV audience share in France among viewers aged 4 and over
Change in television viewing time per viewer in France
Distribution of the income from TF1 Group activities
Change in TF1 revenue and operating margin
Share of advertising in TF1 Group revenue
TF1 audience share in France among viewers aged 4 and over
Distribution of M6 Group revenue by division
Change in M6 Group revenue and operating margin
Share of advertising in M6 Group revenue
M6 audience share in France among viewers aged 4 and over
Television audience share in Spain
Change in television viewing time per viewer in Spain
Breakdown of Atresmedia group revenue
Change in Atresmedia revenue and operating margin
Share of advertising in Atresmedia group revenue
Antena 3 audience share among viewers aged 4 and over
Change in Atresmedia economic model
Television audience share in Italy
Change in television viewing time per viewer in Italy
Change in Mediaset group revenue and operating margin
Share of advertising in Mediaset group revenue
Canale 5 audience share among viewers aged 4 and over
Television audience share in Germany
Change in television viewing time per viewer in Germany
Breakdown of ProSiebenSat.1 group revenue by division
Change in ProSiebenSat.1 group revenue and operating margin
Share of advertising in ProSiebenSat.1 group revenue
SAT 1 audience share among viewers aged 4 and over
Television audience share in the United Kingdom
Change in television viewing time per viewer in the United Kingdom
Breakdown of ITV group revenue by division
Change in ITV group revenue and operating margin
Share of advertising in ITV group revenue
ITV audience share among viewers aged 4 and over
Television audience share in the United States
Change in television viewing time per viewer in the United States
Breakdown of Disney group revenue by income source
Change in Disney group revenue and operating margin
Share of advertising in Disney group revenue
ABC audience share among viewers aged 4 and over
Television audience share in Sweden
Change in television viewing time per viewer in Sweden
Breakdown of MTG group revenue by income source
Change in MTG group revenue and operating margin
Share of advertising in MTG group revenue
TV3 audience share among viewers aged 4 and over
Forecast change in TV3 audience among viewers aged 4 and over
4. Outlook for commercial TV
Change in all TV advertising earnings in Sweden between 2018 and 2024
Change in all TV advertising earnings in the United States between 2018 and 2024
Change in all TV advertising earnings in the United Kingdom between 2018 and 2024
Change in all TV advertising earnings in Germany between 2018 and 2024
Change in all TV advertising earnings in France between 2018 and 2024
Change in all TV advertising earnings in Italy between 2018 and 2024
Change in all TV advertising earnings in Spain between 2018 and 2024
Change in all TV advertising earnings in the world by source between 2018 and 2024
Change in new TV advertising earnings between 2018 and 2024
Change in addressable TV earnings by region between 2018 and 2024
Change in on-demand TV earnings by region between 2018 and 2024
Change in connected TV earnings by region between 2018 and 2024
Change of strategic positioning of commercial audiovisual groups
