Successful big budget campaigns allocate 66% of ad spend to TV - WARC study

Arvind Hickman
By Arvind Hickman | 8 November 2017

Successful high budget campaigns allocate two-thirds of media spend to TV, a WARC's first Global Ad Trends report has found.

The research assessed data from 600 campaigns across 12 markets, including Australia, and focused on TV advertising.

It found TV accounted for 35% of ad spend (US$141.8 billion), down from a peak of 40.5% in 2010. The research found that TV accounts for 24% of daily media consumption, 47% of global display adspend and 88% of global video spend.

Successful high budget campaigns (with a spend of $10 million or more) invested an average of 66% of media spend on TV advertising - a proportion that has remained stable in recent years despite the rise of digital.

The study found that as media budgets increase, the proportion allocated to TV grows and the proportion allocated to digital decreases.

Low budget campaigns (up to US$500,000) allocate on average 8% on TV and mid-budget campaigns (US$500,000 to US$10 million) spend between 25% to 60%.

This trend is likely to continue as the cost of TV advertising is due to rise above inflation. WARC's Media Inflation Forecast, a survey of global media agencies, says cost-per-thousand (CPM) for a 30-second TV spot is expected to rise by an average 5% on a global basis next year.

The two sectors that are most TV-led are financial services and alcoholic drinks brands.

Of the markets WARC analysed, the Australian ad market is forecast to grow by 7.3%, placing it behind Russia (10.6%), India (10.4%) and China (8.2%), and well ahead of global adspend growth forecasts of 5% this year and 5.9% in 2018.

The research also found that Facebook's attainable user penetration is approaching 50%.

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