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Online businesses help TV revenue top £5 billion in 2015

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Nielsen have recently published 2015 TV spend figures and have reported a total spend of £5.27 billion, a 7.4% increase on 2014. The figure includes spot, sponsorship, broadcaster VOD (video-on-demand) and product placement.as-seen-on-tv1-234x300

This is the sixth consecutive year that TV revenue has increased, with online businesses investing over £500 million in TV advertising, with some of the biggest players such as Google, Facebook and Netflix spending over 60% of their marketing budgets on the medium.

With 87% of commercial TV still being watched live, it is hardly surprising that we saw over 800 advertisers either launch on TV for the first time, or do so for the first time in five years. Facebook were one notable new advertiser spending £10.8 million on TV.

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Whilst the continued growth of TV advertising substantiates the medium as the most effective for advertisers, the spend growth does cause some issues. The increased demand for inventory is not being met by stations, with the total number of impacts decreasing by c5% each year, the easiest way to meet this demand is to increase pricing. This means that effective analysis is more important than ever to manage the increased costs and growing number of advertisers on TV.

This particularly evident when we look at our own client portfolio and the number of new advertisers using ARMalytics for successful TV campaigns. In 2015 14% of billings were driven by new advertisers, compared to 7% in 2014. Even though the market is busier than ever, through the use of our technology we are still making smaller TV and budgets and new advertisers a success story.