Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Central America

Central America

Ad spending in the Traditional TV Advertising market in Central America is forecasted to reach US$208.60m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.46%, leading to a projected market volume of US$224.30m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Central America is projected to be US$4.90 in 2024.
The number of users in the Traditional TV Advertising market in Central America is expected to reach 45.91m users by 2029.
Traditional TV Advertising in Central America is seeing a resurgence as companies capitalize on the region's growing viewership and engagement rates.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Central America is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Central America are shifting towards traditional TV advertising as it continues to be a popular and effective medium for reaching a wide audience. Despite the rise of digital advertising, many consumers in the region still rely on traditional TV as their primary source of entertainment and information. This preference for TV programming creates a valuable opportunity for advertisers to reach a large and diverse audience through traditional TV advertising. Trends in the market also contribute to the development of the Traditional TV Advertising market in Central America. Advertisers are increasingly recognizing the importance of targeting specific demographics and tailoring their advertisements to appeal to different segments of the population. This trend has led to the creation of more targeted and personalized TV advertisements, which are more likely to resonate with consumers and drive engagement. Additionally, the rise of streaming services and video-on-demand platforms has opened up new avenues for traditional TV advertising, allowing advertisers to reach viewers who consume content through these platforms. Local special circumstances in Central America further contribute to the growth of the Traditional TV Advertising market. The region has a diverse population with varying levels of internet access and digital literacy. This digital divide creates a unique opportunity for advertisers to reach consumers who may not have access to digital platforms or prefer traditional TV programming. Additionally, the presence of local TV networks and channels in Central America allows advertisers to target specific geographic regions and tailor their advertisements to local audiences. Underlying macroeconomic factors also play a role in the development of the Traditional TV Advertising market in Central America. Economic growth and stability in the region have led to increased consumer spending power, which in turn fuels advertising investments. As businesses and brands seek to expand their reach and increase brand awareness, traditional TV advertising remains a reliable and effective channel for reaching consumers in Central America. In conclusion, the Traditional TV Advertising market in Central America is developing and growing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers in the region are recognizing the value of traditional TV advertising in reaching a wide audience and are adapting their strategies to target specific demographics. With the continued growth of the region's economy and the popularity of traditional TV programming, the Traditional TV Advertising market in Central America is expected to continue its upward trajectory.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.