Advertising in the Americas is expected to remain as the main source of television revenue until 2012, when it is predicted to be generating a revenue of over $101 million, says a new report from ZenithOptimedia.
Between 2000 and 2001, television advertising revenue fell for the first time in over ten years from $63,220 million to $60,034 million (5%) and stagnated at this level until 2004 when it rose to $64,676 million. ZenithOptimedia says that the 16 countries of the Americas are now on course to resume the trend rate of 6% annual growth.
Although television advertising looks set to dominate TV revenue over the next few years, pay-TV is not far behind says the report from the global media agency. In 2003, subscription revenues generated $56,690 million and unlike advertising, pay-TV has continued to grow since 1990 and is expected to reach revenues of $95,416 million by 2012, that’s a 58.6% growth when compared to 2004 estimates.
| Television Advertising Expenditure And Pay-TV Subscription Revenues in the Americas |
| US$ million (current prices) |
| |
|
|
| |
Advertising Expenditure |
Subscription Revenues |
| 1990 |
33,733 |
16,700 |
| 1991 |
33,706 |
18,185 |
| 1992 |
35,266 |
19,517 |
| 1993 |
37,918 |
20,806 |
| 1994 |
40,502 |
22,486 |
| 1995 |
44,212 |
25,269 |
| 1996 |
48,386 |
28,422 |
| 1997 |
51,995 |
32,029 |
| 1998 |
55,309 |
35,455 |
| 1999 |
58,002 |
38,658 |
| 2000 |
32,220 |
42,027 |
| 2001 |
60,034 |
46,509 |
| 2002 |
60,753 |
51,789 |
| 2003 |
60,832 |
56,690 |
| 2004 |
64,676 |
60,172 |
| 2005 |
66,606 |
64,765 |
| 2006 |
69,289 |
68,798 |
| 2007 |
73,545 |
72,959 |
| 2008 |
78,374 |
76,999 |
| 2009 |
83,550 |
81,445 |
| 2010 |
89,118 |
85,644 |
| 2011 |
94,968 |
90,392 |
| 2012 |
101,168 |
95,416 |
| Source: ZenithOptimedia, June 2004 |
Cable remains the most popular means of receiving pay-TV across America and is expected to reach 60% penetration by 2012. On the other hand, there is very little demand for digital terrestrial television except for in the US, says the report.
Although ZenithOptimedia has not yet analysed the threat posed to advertising by personal video recorders (PVRs), the report does say that based on research evidence carried out by other sources, PVRs are not likely to present a material threat to advertising revenues during the forecast period.
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