Total revenues of Turkiye’s internet advertising market reached $1.6 billion in 2022, and these revenues are expected to increase at a compound annual growth rate of 8.6% by 2027, reaching $2.3 billion.
PwC published the Global Entertainment and Media Industry Outlook 2023-2027 report.
According to the report, the 24th issue of which was prepared this year, the total revenue of the global entertainment and media industry increased by 5.4% in 2022, reaching $2.3 trillion. This rate indicates a slowdown compared to the 10.6% growth recorded in 2021, when economies began to recover after the Covid-19 epidemic.
PwC’s Global Entertainment and Media Industry Outlook 2023-2027 research, covering 13 entertainment and media segments in 53 regions, included analyzes of advertisers’ and consumers’ media spending and predictions for the next 5 years.
According to the research, while internet advertising continues its rise, the gaming industry also attracts attention with its strong growth potential. While technology stands out as one of the most important driving forces of the industry, generative artificial intelligence and the metaverse present new opportunities by transforming the entertainment and media experience.
PwC Turkiye Entertainment and Media Sector leader Murat Colakoglu, whose views were included in the statement, said that PwC’s Global Entertainment and Media Sector Outlook report, which has become a tradition and is followed with interest by the industry every year, offers an in-depth perspective on how expectations will be reshaped in the entertainment and media industry, while also revealing what course of growth will follow.
“77% of the revenue is obtained from mobile internet access”
Colakoglu said, “According to the research findings, it is predicted that the sector growth rate, which increased significantly after the pandemic, will tend to decrease in the next 5 years. This situation forces companies to develop brand new strategies, taking into account current and future sector and consumer trends.”
Considering the report’s findings for Turkiye, Colakoglu stated that $2.4 million of the sector size, which will reach $5.5 million in total in 2022, is the revenue generated by the internet access segment, and said:
“Approximately 77% of this revenue is generated from mobile internet access. Internet advertising is a strong catalyst for growth due to increased time spent on e-commerce and digital platforms. The revenues of this segment are expected to increase at a CAGR (Compound Annual Growth Rate) of 8.6% by 2027, reaching $2.3 billion. On the other hand, the TV advertising market, which still maintains its importance in Turkiye as in the world, has grown by 36% in 2021 and 35% in 2022 since the COVID-19 crisis, reaching $448 million.
Growth will slow, but the segment is expected to reach $539 million in 2027 at a CAGR of 3.8%, according to the research. Additionally, the podcast segment continues to develop in Turkiye. The fact that the number of monthly listeners will increase by 13.8% and reach 11 million in 2022 is an indication of how dynamic potential the sector has.”
Advertising is close to becoming the first trillion-dollar market
According to the report, with the increase in time spent on e-commerce and digital platforms, companies all over the world will spend much more to reach consumers at the purchasing and decision stages in the coming years. Advertising is predicted to surpass consumer spending as the largest category in 2025.
The Internet advertising category has been a strong catalyst of growth, recording 8.1% growth in 2022. The report also shows that global advertising revenues will rise from $763.7 billion to $952.6 billion between 2022 and 2027, reaching a compound annual growth rate of approximately 4.5% per year.
According to this trend, advertising is on its way to become the first category among the 3 main entertainment and media categories to reach $1 trillion in annual revenue. The third major category, internet access, is also predicted to surpass consumer spending in 2026.
According to the report, which shows that the share of consumer expenditures on entertainment and media in general expenditures will decrease, per capita consumer expenditures, which will be 0.53% of average personal income in 2023, will constitute 0.45% in 2027.
It is expected to reach $2.3 billion
The report points out that the impact of consumer spending on entertainment and media products and services is decreasing and the impact of advertising is increasing. This trend is among the factors that change the conditions for industry leaders and necessitate a comprehensive re-evaluation and change.
The total revenues of Turkiye’s internet advertising market reached $1.6 billion in 2022, and these revenues are expected to increase with a compound annual growth rate of 8.6% by 2027, reaching $2.3 billion.
The podcast industry in Turkiye continues to experience strong growth. The number of monthly listeners, which was 9.7 million in 2021, increased by 13.8% in 2022, reaching 11 million.
Turkiye’s music, radio and podcast market reached $125 million in 2022, while it was $79 million in 2021. Total revenue is projected to grow at a CAGR of 11.6% during the forecast period, reaching $217 million in 2027.
Source: Trthaber / Prepared by Irem Yildiz