Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Sweden

Sweden

Ad spending in the Traditional TV Advertising market in Sweden is forecasted to reach €499.70m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of -2.40%, leading to a projected market volume of €442.60m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Sweden is projected to be €67.10 in 2024.
The number of users in the Traditional TV Advertising market in Sweden is expected to reach 7.7m users by 2029.
Traditional TV advertising in Sweden is experiencing a decline in viewership as digital platforms become more popular among the tech-savvy population.

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 Sweden is experiencing significant growth and development.

Customer preferences: Swedish consumers still have a strong affinity for traditional TV advertising. Despite the rise of digital advertising platforms, many viewers in Sweden continue to watch traditional TV channels and are exposed to the advertisements that accompany their favorite shows. This preference for traditional TV viewing has contributed to the sustained demand for TV advertising in the country.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Sweden is the increasing use of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences based on demographics, interests, and viewing habits. This targeted approach has proven to be highly effective in reaching the desired audience and has led to an increase in the effectiveness of TV advertising campaigns. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are utilizing interactive features such as QR codes and augmented reality to engage viewers and drive them to take action. This integration of digital elements has enhanced the overall effectiveness and appeal of TV advertising in Sweden.

Local special circumstances: Sweden has a highly developed advertising industry, with a strong focus on creativity and innovation. Advertisers in the country are known for creating visually appealing and thought-provoking TV ads that resonate with viewers. This emphasis on creativity has helped to maintain the relevance and effectiveness of TV advertising in Sweden. Additionally, Sweden has a high level of internet penetration and smartphone usage. This has led to the adoption of second screen viewing, where viewers use their smartphones or tablets while watching TV. Advertisers have capitalized on this trend by incorporating second screen elements into their TV ads, such as hashtags and social media handles. This integration of second screen elements has helped to increase viewer engagement and extend the reach of TV advertising campaigns.

Underlying macroeconomic factors: Sweden has a stable and prosperous economy, which has contributed to the growth of the Traditional TV Advertising market. Advertisers have the financial resources to invest in TV advertising campaigns, and consumers have the purchasing power to support the products and services being advertised. The strong economy has created a favorable environment for the Traditional TV Advertising market to thrive. In conclusion, the Traditional TV Advertising market in Sweden is experiencing growth and development due to customer preferences for traditional TV viewing, the adoption of programmatic advertising, the integration of digital elements, the emphasis on creativity, the prevalence of second screen viewing, and the stable macroeconomic conditions. These factors have contributed to the continued relevance and effectiveness of TV advertising in Sweden.

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 Global Survey) 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.