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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.
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.