Tess Alps

2010 saw good growth for the total advertising market at about 8%; total TV spot and sponsorship revenue performed even better, growing at about 15% (Nielsen Media Research reports spot revenue growth even higher at 18%). After two dismal years when TV revenue declined, albeit less than the total advertising market, it’s very gratifying to report that TV revenue reached a new historic high of £3.6bn net and £4.2bn gross.

TV’s share of total advertising has now grown for three years in succession and its share in 2010 returned to 1990s’ levels. In addition to this linear TV market, online TV was one of the fastest growing elements of online display. All in all, a fantastic result.

TV ad revenue reached a record high of £4.2bn gross

The increase in TV ad investment reflects both commercial TV’s continued success in attracting record viewing and the growing evidence of its unrivalled ability to create business profit, as well as advertisers’ acknowledgement and first hand experience of these strengths. In particular, there is growing recognition of TV advertising’s ability to generate web activity, from search to purchase.

According to Nielsen, Retail remained the top spending TV advertising category in 2010, increasing its investment by 24.1% on 2009. This was followed by Entertainment and Media, which increased spend by 16.8% and Finance, which increased spend by 8.8%. There were also dramatic increases in TV ad spend in Leisure Equipment (up 72.3%) and Drink (up 45.8%).

Looking at TV spend by holding company, Procter and Gamble remained the biggest spending holding company on TV with an increase in 2010 spend of 31.7% following a reduction in its TV budgets during 2009. Unilever, who also reduced its spend in 2009, also registered a solid increase in TV investment during 2010, with an increase of 10%.

Other holding companies increasing their investment in TV advertising included BT Group (up 110.9%), BSkyB (up 63.4%) and Lloyds Banking Group (up 73.6%).

DFS remained the highest spending individual brand on TV, increasing investment by 5.6% on 2009. Two eye-catching TV spenders were both newspapers, with the Daily Mail increasing investment by an impressive 196% and The Sun adding 48.4% to its TV effort. This recognition of the instant effectiveness of TV advertising by short-term sales-driven products like newspapers echoes the flood of online brands – such as Comparethemarket.com – who are spending the majority of their marketing budgets on TV.

Part of the reason 2010 was such a success for TV advertising was the number of advertisers who returned to TV after a break or who tried TV for the first time. There were 967 new or returning TV advertisers (returning after no TV advertising for at least 5 years), including Sportsdirect.com, Sharp Electronics and – very memorably – Yeo Valley.

TV advertising investment

TV’s share of total advertising has now grown for three years in succession and its share in 2010 returned to 1990s’ levels. In addition to this linear TV market, online TV was one of the fastest growing elements of online display. All in all, a fantastic result. Here you can have a look at the top spending categories for commercial TV; which holding companies and brands where most active and which showed the biggest increases in spend.

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