Brands tipped to leave broadcast TV out in the cold

AA/Warc forecast 2.4% drop in Q4, but there are big gains for non-broadcast video.

Argos: one of the first brands to launch its Christmas TV ad this year
Argos: one of the first brands to launch its Christmas TV ad this year

Advertisers are set to spend less on broadcast TV spots in the Christmas quarter compared with 2018, despite the enduring popularity of big TV-led festive ad campaigns.

The Advertising Association and Warc have forecast a 2.4% annual drop in spending on the medium in the fourth quarter of 2019 to £1.18bn, capping a tough year for commercial broadcasters.

This is out of kilter with the predicted 4.7% rise for adspend across all media to a record £6.76bn for the final three months of the year.

However, TV broadcasters are expected to see strong growth in adspend on their video-on-demand offerings, forecast to increase by 15.4% to £128.4m. This will only partly offset the drop in broadcast adspend, leaving TV as a whole down 1% to £1.4bn, according to AA and Warc.

Online video more generally will also be popular this quarter, with a 21.2% rise to £834.5m accounting for most of the growth of online display advertising.

Print media will continue to lose out on adspend, while search, outdoor, cinema and radio will continue to attract more.

* Broadcaster video-on-demand, digital revenues for news brands, magazine brands and radio station websites are also included within online display and classified totals, so care should be taken to avoid double counting.


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