Targeted TV ads to grow in UK and US

18 March 2009

NEWTON ABBOT, UK: Targeted ads could take around 30% of all TV adspend by 2019, when they will enjoy revenues of around $17.6 billion (€13.5bn; £12.5bn) in the US, and $1.8bn in the UK, at current prices, reports Generator Research.

The company predicts that "traditional" TV adspend will fall by around 75% by 2019, as broadcasters' control over distribution is increasingly undermined. 

As such, it estimates that targeted ads to set-top boxes or televisions connected to the web will contribute almost a third of TV adspend by that date.

Some 24% of the medium's ad revenues will also be directed to PCs or "portable devices" where TV ads can be viewed by 2019.

"Hybrid services", where programmes are shown on broadcast networks and then streamed online with targeted ads, will take a further 21% of adspend in ten years time.

Andrew Sheehy, Generator's head of research, argues that TV broadcasters are on a "slippery slope", and that the "biggest losers will be the terrestrial networks who have no way of delivering their own ads over the internet to television sets."

Generator says broadcasters and electronics manufacturers therefore need to develop an infrastructure capable of delivering targeted ads, which could be based on TV viewing habits, online browsing history, or on data provided by consumers.

This information could then "unlock new sources of advertising revenue" and has "the potential to return the industry to a period of growth."

Data sourced from Brand Republic; additional content by WARC staff