Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Portugal

Portugal

Ad spending in the Traditional TV Advertising market in Portugal is forecasted to reach US$321.70m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.40%, leading to an estimated market volume of US$328.20m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$35.15 in 2024.
By 2029, the number of users in the Traditional TV Advertising market is expected to be 9.02m users.
Portugal's Traditional TV Advertising market shows resilience amid digital competition, leveraging local content and cultural connections to engage audiences effectively.

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 Portugal is experiencing significant changes and developments in recent years. Customer preferences in Portugal have shifted towards digital platforms and online streaming services, leading to a decline in traditional TV viewership. This change in consumer behavior can be attributed to several factors. Firstly, the increasing availability of high-speed internet and the widespread use of smartphones and other digital devices have made it easier for people to access online content. Additionally, the younger generation in Portugal is more tech-savvy and prefers the convenience and flexibility offered by digital platforms. As a result of these changing customer preferences, there has been a decline in the demand for traditional TV advertising in Portugal. Advertisers are now allocating a larger portion of their advertising budgets to digital channels such as social media, search engines, and online video platforms. These digital channels offer more targeted and measurable advertising options, allowing advertisers to reach their desired audience more effectively. In addition to the shift towards digital advertising, there are also local special circumstances that have contributed to the decline of traditional TV advertising in Portugal. One of the key factors is the increasing popularity of subscription-based streaming services like Netflix and Amazon Prime Video. These platforms offer ad-free viewing experiences, attracting viewers who are willing to pay for uninterrupted content. This has further reduced the audience for traditional TV channels and subsequently decreased the demand for TV advertising. Furthermore, the underlying macroeconomic factors in Portugal have also played a role in the decline of traditional TV advertising. The country experienced a financial crisis in the late 2000s, which resulted in a decrease in consumer spending and advertising budgets. Although the economy has since recovered, advertisers are still cautious about their spending and are looking for more cost-effective advertising options. In conclusion, the Traditional TV Advertising market in Portugal is undergoing significant changes due to shifting customer preferences towards digital platforms and online streaming services. Advertisers are reallocating their budgets to digital channels that offer more targeted and measurable advertising options. The increasing popularity of subscription-based streaming services and the lingering effects of the financial crisis have also contributed to the decline of traditional TV advertising in Portugal.

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.