WARC has released its first Global Ad Trends Report digesting the latest insights and evidenced thinking from the worldwide advertising industry.
The first monthly Global Ad Trends report, focusing on TV, includes the following key findings:
TV takes up almost two-thirds of media spend in high-budget successful brand ad campaigns
Data drawn from analysis of more than 600 case studies in WARC's database show that successful high-budget campaigns ($10m+) allocate 66 per cent of their media spend to TV.
Additionally, with an increasing budget comes an increased proportion of budget allocated to TV. At the same time, the proportion of budget allocated to digital decreases. Low-budget campaigns (up to $500k) allocate on average eight per cent on TV and mid-budget campaigns ($500k to $10m) spend between 25 per cent and 60 per cent.
High-budget campaigns continue to focus on TV despite the rise of digital
Budget allocation to TV has remained consistent in recent years, at approximately two-thirds. This tallies with TV's share of global advertising spend, which has also remained stable over the period.
Financial services and alcoholic drinks brands are most TV-led.
TV draws 35 per cent of global advertising spend
Data from WARC's 12 key markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States – which between them account for approximately two-thirds of the value of global ad trade, show that TV drew 34.9 per cent ($141.8bn) of global ad spend last year. This is down from a peak of 40.5 per cent in 2010, but is just a 0.9 point dip over the decade.
Media agencies expect TV costs to rise in 2018
Data from WARC's Media Inflation Forecast, a survey of global media agencies, show that the cost-per-thousand (CPM) for a 30-second TV spot is expected to rise by an average 5 per cent on a global basis next year.
TV CPM in the US, the world's largest market, is anticipated to rise with the global average. In developing markets, namely India and China, it is predicted to rise well ahead of the global average.
Global Media Analysis: A round-up of the importance of TV
TV accounts for:
● 24 per cent of daily media consumption
● 35 per cent of global advertising spend
● 47 per cent of global display adspend
● 66 per cent of successful, high-budget campaigns
● 88 per cent of global video spend
Other new key media intelligence on WARC Data:
● Facebook's attainable user penetration nears 50 per cent
● Martech is a $34billion industry in the UK and US
● WARC's own International Forecast shows Global ad spend is expected to rise 5.0 per cent in 2017 and 5.9 per cent in 2018 (PPP)
● Mobile expected to account for 92 per cent of global digital ad spend growth this year
● Russia (+10.6 per cent), India (+10.4 per cent), China (+8.2 per cent) and Australia (+7.3 per cent) ad markets to grow fastest this year and next
● Marketing budgets continued to grow in Europe during October 2017, but showed weakness in APAC and America.
James McDonald, Data Editor, WARC, said, "The advertising industry increasingly relies on factual and evidenced data to make business decisions on a daily basis. With the launch of our monthly Global Ad Trends Report, which is included as part of our newly enhanced data platform, we will provide the latest independent, objective and unbiased information drawn from actual figures rather than modelled or estimated data."