TV Analytics Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Mode (On-premise, Cloud), By Application (Competitive Intelligence, Customer Lifetime Management, Content Development, Audience Forecasting, Campaign Management, Churn Prevention and Behavior Analysis, Others), By Transmission Type (OTT, Cable TV, IPTV, Satellite) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The TV analytics market size was valued at USD 3.51 billion in 2022. It is projected to reach USD 15.80 billion by 2031, growing at a CAGR of 18.2% during the forecast period (2023-2031). 

Technology continues to evolve rapidly on account of changing consumer preferences. TV analytics offers the ability to improve the relationship between network performance and customer satisfaction. It helps media companies to ferret out new ways and attract viewers by understanding what consumers are watching and what they prefer to watch. The rising usage of social media platforms for branding and advertising of product and services are likely to drive the demand for TV analytics market during the forecast period, where social media platforms offer marketers and media companies to better understand the connection between viewers and brands by garnering large audience at lower costs.

Market Dynamics

What are the primary factors driving the TV Analytics Market?

Increasing Adoption of Analytics in the TV Industry

To organize their content distribution chain, TV service providers have adopted more data analytics tools in recent years. These tools are currently used primarily to improve process efficiency as part of monetization strategies. These tools have been employed, for example, to forecast viewer segment preferences for specific content and to implement personalization services. They have also been used to direct targeted content marketing or the upselling of service packages. The TV industry is adopting analytical tools for TV channels with smarter viewer segmentation due to the increased interest among service providers to increase the benefits of TV viewership data.
Increasing Adoption of Data Capturing Technology

As data becomes an increasingly important part of TV, it is crucial for operators to deliver the appropriate content to the intended audience at the appropriate time. To do this, OTT platforms, advertising firms, and broadcasters are implementing data-oriented models to improve targeting, which in turn spurs industry expansion. The television industry now has new opportunities to incorporate viewer data, advertising, and audience measurement across all platforms thanks to data-capturing technology. Additionally, media companies have developed content strategies by comprehending consumer consumption patterns in order to address broadcasting challenges. As a result, consumer involvement through surveys, reviews, and social media platforms has improved viewers' decision-making in real time.

What are the main factors that will slow down the TV Analytics Market?

The rise in Smartphone Penetration

The television industry is witnessing a decline due to the increasing consumption of entertainment services on smartphones, tablets, and laptops. Smartphones provide more convenience with on-the-go entertainment along with other positive factors compared to television. Therefore, advancements in smartphone features can slow down the TV analytics market. 

What are the future opportunities for TV Analytics Market?

Booming OTT Industry

The availability of distinct content, as well as the growing number of OTT service providers, are driving the market's expansion. High-quality content that is accessible through OTT services is what consumers want. For OTT vendors, creating content that is educational, meaningful, and relevant for a variety of channels is now a requirement. Content will be crucial for brand marketers, so ensuring that it is of the highest quality is of the utmost importance. In order to address the content availability problem, service providers have added a number of well-known books to their content libraries. This improves user satisfaction and experience. Since many users of over-the-top services use them frequently, service providers have the chance to examine their viewing patterns and provide them with relevant content. The market is anticipated to display a positive future during the forecast period because these services offer a personalized experience that is useful in engaging consumers.

Regional Analysis

The global TV analytics market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America region is the highest contributor to the market and is expected to grow at healthy CAGR during the forecast period due to the viewers' preference for digital originals offered through several streaming platforms such as YouTube, Hulu, and Netflix, among others. Netflix utilizes algorithms & analytical solutions to gauge viewers' predilections. Thus, to increase the usage of analytics solutions in the entertainment industry to attract users, the TV analytics market is expected to witness exponential growth in the following region. 

Europe is expected to witness dynamic growth in the TV analytics market during the forecast period, owing to the direct-to-consumer (DTC) and business-to-business (B2B) brands primarily focusing on investments to drive the growth of performance-driven TV advertising. For instance, in January 2019, Admo. Tv raised a Series B funding round of USD 6.72 million led by Runa Capital to expand its presence in the U.K. In Europe, Netflix has seen rapid growth. By 2016, it had expanded its services to every country in Europe and had surpassed the $1 billion revenue mark. By 2020, Netflix had overtaken German public broadcaster ARD as the second-largest revenue-generating company in Europe.

Asia-Pacific is expected to witness significant growth in the TV analytics market during the forecast period due to the rapid adoption of digitalization and flexible economic conditions. Moreover, the increasing customer base inclining toward global content fuels the growth of OTT providers such as HotStar, Netflix, Amazon Prime Video, and others. Besides, developments in the field of advanced analytics enable better decision-making. For instance, in June 2018, Kantar launched 'Kantar Brand Growth Lab' – a research and development lab in Asia focusing on advanced analytics. The company has joined forces with Singapore's Economic Development Board (EDB), aiming to convert data into insights to drive customer-centric decision-making and facilitate sustainable growth in the areas such as big data, artificial intelligence, and machine learning. 

The LAMEA region is expected to witness moderate growth in the global TV analytics market during the forecast period. For instance, according to Parrot Analytics, Latin America is the frontrunner in the TV industry, with the presence of local content producers across several countries in the region. 

Segmental Analysis

The global TV analytics market is segmented by component, deployment mode, application, and transmission type. 

Based on components, the global TV analytics market is bifurcated into software and services.

The services segment is the highest contributor to the market and is expected to grow at healthy CAGR during the forecast period as analytical solutions have become an integral part of business processes.

The software segment is expected to witness a higher CAGR owing to the rising number of connected devices is boosting the demand for personalized content delivered across multiple distribution channels and devices for the viewers. Thus, to offer viewers an immersive experience, the media and entertainment companies shifted towards adopting analytical software and solutions providing support and maintenance services.

Based on the deployment model, the global TV analytics market is bifurcated into on-premise and cloud. 
The on-premise segment is the highest contributor to the market and is expected to grow healthy CAGR during the forecast period. The configuration of the equipment and cabling infrastructure for on-premise solutions for OTT platforms tends to be relatively cost-effective. Additionally, this model gives viewers the power to select the kind of content, giving them more control. Upgrading and maintaining on-premise solutions is ongoing.

The cloud segment is expected to grow at a significant rate. In the TV analytics market, where demand for media and entertainment is growing rapidly, cloud-based solutions are anticipated to flourish. As a result, cloud solutions provide a high level of flexibility and scalability to deal with unpredictable and complex challenges. Content producers are under enormous pressure to produce and distribute original content within a given timeframe as operators compete more fiercely to offer the best content and entertainment. Because of this, cloud solutions provide seamless streaming even under extremely heavy workloads.

Based on application, the global TV analytics market is bifurcated into advertising, competitive intelligence, content management & broadcasting, content development, and audience forecasting. 

The advertising segment is the highest contributor to the market and is expected to grow at healthy CAGR during the forecast period. TV advertisements are effective at reaching a larger audience, so continuous monitoring is necessary to gather every bit of information about how the advertisement is performing. Due to these requirements, TV advertising analytics are now used to precisely track and evaluate ad performance. TV analytics have become more widely used in the advertising sector as a result of the expanding need to effectively communicate with and reach the target audience as well as to ensure better visibility. 

The content management & broadcasting segment is expected to grow at a significant rate. The growth can be linked to the data influx regarding the rise in viewers. Data touchpoints are growing exponentially as the television industry moves toward data-oriented models. Therefore, surveys that are centered on consuming content and consumer behavior give broadcasters a special perspective on their audience. 

Based on transmission type, the global TV analytics market is bifurcated into OTT, Cable TV, IPTV, and Satellite.
The OTT segment is the highest contributor to the market and is expected to grow at healthy CAGR  during the forecast period due to the rising demand for personalized content among viewers. OTT platform developers utilize advanced analytics integrated with AI and machine learning technology to discern viewers' behavior and choices over personalized TV content. For instance, Netflix, with a subscriber base of 223 million users, utilizes Bigdata to enhance the quality and stability of its video and evaluate customer entertainment preferences and viewing patterns. 

The satellite segment is expected to grow at a moderate rate. The key benefit of satellite TV is the abundance of programming channels that are available. Even compared to cable TV, the programming channel service offered by satellite TV providers is incomparable. The most popular package, for instance, offers more than 500 distinct programming channels. In addition to having an unmatched number of channels, satellite TV also offers an unmatched variety of programming. Almost every form of entertainment is covered by the channels on your satellite TV, including music, specialized sports, movies, and religion.

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments

• March 2022, The Nielsen Company is getting acquired for USD 16 billion by Evergreen Coast Capital Corporation
• June 2022, LG Ad Solutions announced a multi-year deal with Magnite, an omnichannel sell-side advertising platform, to enable data-driven planning and advanced analytics for media buyers.