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Tuesday, 7 November 2017, 16:30 HKT/SGT
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Source: WARC
TV takes almost two-thirds of successful big-budget ad campaigns
Global Ad Trends - A focus on TV

LONDON, Nov 7, 2017 - (ACN Newswire) - WARC, the international authority on advertising and media effectiveness, 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% 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 8% on TV and mid-budget campaigns ($500k to $10m) spend between 25% to 60%.

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% 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% ($141.8bn) of global adspend last year. This is down from a peak of 40.5% 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% 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% of daily media consumption
35% of global advertising spend
47% of global display adspend
66% of successful, high-budget campaigns
88% of global video spend
Global Ad Trends is part of WARC Data, a newly enhanced dedicated online service featuring current advertising benchmarks, data points, ad trends and user-generated expanded databases.


Other new key media intelligence on WARC Data:
Facebook's attainable user penetration nears 50%
Martech is a $34bn industry in the UK and US
WARC's own International Forecast shows Global adspend is expected to rise 5.0% in 2017 and 5.9% in 2018 (PPP)
Mobile expected to account for 92% of global digital adspend growth this year
Russia (+10.6%), India (+10.4%), China (+8.2%) and Australia (+7.3%) 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 Americas
James McDonald, Data Editor, WARC, says: "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."


Aimed at media and brand owners, market analysts, media, advertising and research agencies as well as academics, WARC Data will provide current advertising and media information, hard facts and figures - essential market intelligence for ad industry related business, strategy and planning required in any decision making process.

WARC Data is available by subscription only. For more information visit www.warc.com/data.


About WARC

- your global authority on advertising and media effectiveness

warc.com is an online service offering advertising best practice, evidence, insights and data from the world's leading brands. WARC helps clients grow their businesses by using proven approaches to maximise advertising effectiveness. WARC's clients include the world's largest advertising and media agencies, research companies, universities and advertisers.

WARC runs four global and two regional case study competitions: WARC Awards, WARC Innovation Awards, WARC Media Awards, The Admap prize, WARC Prize for Asian Strategy and WARC Prize for MENA Strategy.

Founded in 1985, WARC is privately owned and has offices in the UK, U.S. and Singapore.

Contact:
Amanda Benfell
PR Manager, WARC
Email: amanda.benfell@warc.com
Tel: +44 (0) 20 7467 8125


Nov 7, 2017 16:30 HKT/SGT
Source: WARC

Topic: Press release summary
Sectors: Media, Advertising
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