With more time available at home than ever before due to COVID-19 restrictions, people in the UK turned to their TV. But while the amount of hours watched went up, traditional advertising revenue fell sharply.
People signed up to increasing numbers of Over The Top (OTT) subscription services such as Netflix and Disney+. These services were promoted heavily and the timing of the launch of Disney+ helped it to cleverly capitalise on the growing number of hours spent at home.
As out-of-home spending opportunities were limited by lockdowns, advertisers seemingly found equally limited reasons to continue their advertising spend. Broadcast TV advertising for 2020 dropped by over 10%.
Yet we’re seeing significant bounce back in this sector, with revenues well ahead of projections for H2 2021. The forecast is for growth of around 8% p.a. in 2022 as advertisers return to the screen.
As a source of future growth, TV providers will need to give advertisers increased levels of targeting and control for their campaigns. Advertisers are used to precision targeting of digital adverts, and they will come to expect the same of TV.
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