TV accounts for 66% of adspend in high budget campaigns

12 Nov 2017  |  Scarlett O'Donoghue 
TV accounts for 66% of adspend in high budget campaigns

WARC has released its first Global Ad Trends Report, offering new insights into global adspend trends.

The study shows that TV accounts for 66% of media spend in successful high budget ($10m+) ad campaigns, 8% for low budget campaigns (up to $500k), and between 25% - 60% for mid-budget campaigns ($500k to $10m).

Despite the rise of online advertising, high-budget campaigns continue to focus on TV, which accounts for 24% of daily media consumption.

WARC's data also reveals that TV drew 34.9% ($141.8bn) of global adspend last year whilst the proportion of budget allocated to TV has also increased.

Meanwhile, WARC's Media Inflation Forecast shows that the cost (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 is expected to rise with the global average whereas in less developed markets such as China and India it is predicted to rise well ahead of 5%.

"Analysis of successful campaigns within WARC's case study database shows a clear correlation between budget band and media allocation: with a higher budget comes an increased proportion for TV," said Warc analyst James McDonald.

"Further, TV's share of media budgets within the $10m+ band has remained remarkably stable at two-thirds in recent years, despite the rise of digital. Our research also finds that Alcoholic Drinks and Financial Services brands particularly favour TV for their advertising campaigns."

WARC's analysis was drawn from over 600 case studies in 12 key markets: Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States.

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