TV ad revenues still strong, says PwC study

SINGAPORE: Broadcasters in Asia can look forward to higher advertising revenues in the coming years. This is despite the strong challenge from the internet, which continued to siphon off ad spending from other media.

That is according to a new study by global consultancy PricewaterhouseCoopers (PwC).

Regional broadcasters, newspapers and radio stations had to tighten their belts during the recent global economic crisis. This is because companies put a tight rein on their advertising budgets.

Media advertising - their lifeblood - plunged by 11 per cent globally in 2009, according to a survey by PricewaterhouseCoopers (PwC's Global Entertainment and Media Outlook 2011-2015).

And even as advertising rebounded strongly last year, the industry will now face strong competition from the internet, as people increasingly spend more time online.

Still, PwC expects television to corner 40 per cent of total ad spend globally by 2015, larger than its current 38 per cent share last year.

In Asia alone, television advertising should grow by an annual 8.3 per cent on the average in the next five years, to S$75.8 billion by 2015. That still beats the expected S$43.8 billion of ad spending via the internet.

Advertising in Asian newspapers, as well as consumer and trade magazines, will grow by the low single digits at an annual average of 3.9 per cent, 2.8 per cent, and 2.4 per cent respectively. Radio ads are forecast to rise by six per cent annually through 2015.

Experts said television should be able to adapt to the digital evolution where consumers have wider options for accessing information.

Greg Unsworth, Singapore Entertainment and Media Leader with PwC, said: "What we're seeing now more than ever before is the ability of the consumer to access premium content on different platforms and also at a very favourable price point or in some cases, free as well, built into subscription. So we're seeing consumers now with a wealth of choice in terms of entertainment media content that is available and the modes with which they can access and use that content. That should continue to evolve."

TV advertising will also benefit from steady viewing and its association with internet usage.

Wilson Chew, CEO of Strategicom, said: "It is the convergence of media. Television is no longer something you watch in the comfort of your home. Today, television is something you watch as a source of media. Not only are the channels providing more variety, you will also find more and more channels being offered on multiple platforms on the internet."

Major international sporting events, including the Olympics, are expected to lift TV advertising revenues in the next five years.

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