Russia and India will record the strongest growth in advertising spend over the coming year, according to the latest Warc international ad forecast. It predicts that Russia will increase expenditure by 16.5%, followed by India (14.0 percent), China (11.5 percent) and Brazil (8.5 percent). The picture is very different outside the BRIC quartet, especially in Europe, where three countries – Germany (1 percent), France (0.8 percent) and Italy (-0.2 percent) – are now expected to record the worst year-on-year performances. All three economies are facing the possibility of renewed recession due to the eurozone debt crisis. Taking into account the likelihood of inflation, all three countries are likely to see a decline in advertising spend in 2012. The forecast for the UK is more positive, with predicted growth of 4.2 percent. But Warc, the marketing intelligence service, points out that the figure will be boosted by two sporting events – the London Olympics and European football championships. As for the United States, which is forecast to see a 4.1 percent increase in ad spend, its TV broadcasters will undoubtedly benefit from the presidential election. Indeed, across all 12 countries covered by the survey, TV is predicted to increase its share of main media advertising, growing by 5.3 percent compared to the overall media total of 4.5 percent. As for online advertising, the pace of expansion is expected to slow to 12.6 percent this year, down from an estimated 16.6 percent in 2011. The internet is expected to account for 20 percent of all media spend by the end of 2012.
A new law that goes into effect in August will do away with a requirement that Swedish TV channels have at least 20 minutes of programming in between commercial breaks. The law gives Swedish channels the same rules as in other European Union member countries. The new rules loosen restrictions on sponsorships and advertisements. They will also now allow product placements in programming, not previously allowed in Sweden. http://blogs.rnw.nl/medianetwork/changes-to-advertising-law-on-swedish-tv
The Internet is poised to overtake newspapers as the second-largest U.S. advertising medium by revenue behind television, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook for 2010 to 2014. The online ad business, excluding mobile ads, is set to expand to USD 34.4bn in 2014 from USD 24.2bn in 2009, according to the report, which PwC plans to release Tuesday. Newspapers, meanwhile, continue to suffer from a decline in advertising revenue. According to numbers released by the Newspaper Association of America earlier this year, print advertising revenue dropped 28.6 percent in 2009 to USD 24.82bn. The PwC report estimates that print advertising in newspapers will hit USD 22.3bn by 2014. Shifts in consumer behavior, potential for inventory on the Internet, and increased broadband penetration in the U.S. are key factors in PwC’s projections, according to David Silverman, a partner at PwC. The report is particularly bullish on the growth of advertising across interactive media, video and email — predicting that this segment of the market will reach USD 6.6bn in 2014 from USD 4.7bn in 2009. Online TV is expected to propel this segment because it has limited ad inventory within a program, allowing online TV providers to charge premium rates. The mobile advertising market also is poised for growth as wireless networks are upgraded and more Internet-enabled smart phones hit the market.
Growth in India and China helped region become world’s second biggest TV advertising market last year, report finds
TV advertising revenue in the Asia Pacific region overtook that in western Europe for the first time last year, as India and China grew and established markets suffered. Total net TV advertising for Asia Pacific, minus factors including agency commission and client discounts, was USD 27.9bn, according to a report from the media analysts Informa. The value of the western European TV ad market was USD 26.7bn. North America remained by some margin the biggest TV ad market globally, at USD 38.9bn. Earlier this week WPP chief executive Sir Martin Sorrell, addressing the International Advertising Association Conference in Moscow, said that the growth of advertising markets in Asia Pacific was a “shift geographically that is extremely fundamental to us”. He added that while the US had seen a strong recovery this year the situation in Europe remained “depressing”. Western Europe had been expected to stay ahead of the Asia Pacific region in terms of total ad revenue for several more years. This was because of major sports events such as the London Olympics in 2012 and football World Cups in South Africa this year and Brazil in 2014 – both held in countries compatible with European time zones, and therefore attractive to TV advertisers. However, Asia Pacific is now expected to stay ahead, although the gap between it and western Europe is forecast to narrow from more than USD 750m to USD 539m by 2012.
Spain’s main public television station TVE1 has experienced a bump in its ratings since it stopped airing advertisements on January 1, a newspaper reported on Tuesday. The station obtained an audience share of 19.5 percent during the first 10 days of the year compared to 16.6 percent during the entire month of December, according to an internal study cited by the online edition of El Pais. The ratings rise has been greatest when it comes to films. The 2004 movie National Treasure starring Nicolas Cage obtained a market share of 30.5 percent when it aired on Sunday night, an increase of 8.5 percentage points over the average for the same time slot in December. Last year the European Commission warned that Spain faces possible court action for failing to ensure that its television stations comply with a European Union-wide limit of 12 minutes of adverts per hour. Spain’s main association of advertisers, meanwhile, has warned that “saturation advertising” on television was hurting the effectiveness of their messages and turning off viewers. Prime Minister Jose Luis Rodriguez Zapatero’s socialist government axed all commercial advertising on Spain’s two public channels, TVE1 and TVE2, as of 1 January. The two stations had been broadcasting 10 minutes of adverts per hour.
Regulators on Monday ordered a host of European Union countries that missed a deadline to implement new continent-wide digital advertising rules to shape up or face legal action. New EU rules that were to be incorporated into individual countries’ national laws by December 19 cover a huge range of broadcasting issues but also allow for split-screen advertising and product placement – commonly used, for example, in film financing – in all shows “except news, documentaries and children’s programmes,” according to the European Commission. The new Audiovisual Media Services Directive applies to all audiovisual services, including on-demand, over fixed, mobile or satellite networks. Two years after the directive was agreed, the commission said, only Belgium, Romania and Slovakia are fully compliant with EU law, having notified the bloc’s executive of their implementation. Austria, Britain, Denmark, France, Germany, Ireland, Luxembourg, Malta and the Netherlands have implemented “some measures,” but Hungary’s parliament blocked a bill’s passage there entirely and the remaining 14 EU states have yet to get past preliminary preparations
The meerkat Aleksandr Orlov interviews the former Baywatch actor David Hasselhoff in his first podcast, released today. The 12-minute podcast, created by VCCP, features Aleksandr asking The Hoff a series of probing questions on a variety of subjects, including whether he is a member of “Titter” and “advice on how to deal with zee ladies”.
Hasselhoff tells the meerkat: “You must remain aloof. You must remain single, because you are the ultimate meerkat of all time. “You must say your career is more important than marriage and unfortunately you cannot share your love only one person.” According to an earlier announcement Aleksandr is also due to interview Piers Morgan, Simon Cowell and Vladimir Putin. VCCP has also created a £20 doll of Aleksandr, which is due to go on sale in Harrods.
Autumn of 2009 will stick with every Spaniard as the season when its capital city lost out in its second consecutive bid to host the Olympic Games, this time to Rio de Janeiro. It’s also when Spanish Public Television, TVE, bids farewell to advertising after more than 50 years on the air.
Some European states, including Britain and France, charge citizens a TV licence fee. Spain has no licence fee. But the Spanish government aims to provide a public service station. It is hard to believe the government will be able to do this without the help of commercial advertisers. Spain’s two public channels, TVE1 and TVE2, currently broadcast 10 minutes of advertising per hour, which translated to 400,000 adverts last year. The National Broadcasting Radio & Television RTVE, Financing Law came into force on 1 September, 2009. TVE may no longer contract any space for publicity. This means there will be “a significant reduction of advertising space in the coming months of October, November and December,” said Luis Fernández, president of RTVE. By January, 2010, advertising must be wiped from Spanish state television.
The European Commission voiced concern about the volume of adverts on Spanish state television in July, 2007, when it instructed Spain to cut down on TV commercials or be taken to the European Court of Justice in the violation of the Television Without Frontiers Directive. The 20-year-old directive seeks to harmonise broadcasting regulations across the 27-nation bloc.
The Commission’s concern in ’07 stemmed from infringements of a 12-minute limit on spot advertising and teleshopping.
In Spain the limit was established at 17 minutes per hour.
According to the Commission, the terms under which Spain defined the “advertising spot” were too narrow. Consequently, ad formats such as tele-promotions or microslots were included in Spain’s “advertising spot” concept.
The Commission forwarded a letter of formal notice to the Spanish authorities. It read:
- “…Spain has not taken the requisite measures to ensure effective compliance with all the provisions of the Directive. Everything must now be done to remedy this situation and to establish a genuine internal market for audiovisual media services….”
The Spanish government did not agree to change its interpretation of what constitutes an “advertising spot.”
Fast forward two years, though, and the owners of privately-held channels are rubbing their hands together in anticipation of the advertising axe falling on the public broadcaster: In 2008 ad revenues at public channels totalled 557 million euro.
Spain is a decentralised country. Two public broadcasting systems coexist: a national broadcasting television station, TVE, and many autonomic channels that can be watched only in their respective territories known as Autonomous Communities. TVE, founded in 1937, consists of two stations: TVE1, targeting a general audience, and TVE2, which offers cultural programming as well as sports competitions.
The regional channels are modelled after TVE: one is directed to a broad audience and the other to a more cultural customer. Moreover, in Autonomous Communities with official language besides Spanish, such as the Basque Country or Catalonia, regional channels transmit in their co-official languages. Although publicly and privately founded as well, these territorial networks will not automatically be effected by the new law. Their own legislative and administrative competences impact this issue.
This is why discussions about adopting new initiatives must always be held in a context of political and administrative decentralisation.
New funding system
How will Spain pay for non-commercial public state television?
To compensate for an annual loss of publicity revenue (foreseen to be around 478m euro in 2009) Spanish authorities have established a three-way solution.
- Privately-owned commercial stations must provide the country’s two public television stations with 3 percent of their annual gross income, which will raise an estimated 140m euros.
- Telecommunications providers also offering audiovisual services (Telefonica, Vodafone, Orange and others) shall give the equivalent of 0.9 percent of their benefits, which translates to 290m euro.
- The third financing source will come from taxes that all operators (from radio stations to telephone companies) have to pay to be entitled to use a portion of the radio frequency spectrum for broadcasting purposes, which corresponds to 240m euro.
- To complete the 1,200 euro annual budget, state-owned television will contribute 550m euro to RTVE.
Privately-owned commercial channels are partially in favour of this plan. They’ll have one competitor less in an era of eroding advertising revenues. On the other hand, they do not feel compelled to fund RTVE budget with a percentage of their publicity income. This tax will join the already existing 5 percent they are required to earmark for the funding of European and Spanish films.
Telecommunications providers have reacted angrily. They are willing to take legal steps claiming it is not fair to require them to fund a sector that has no direct connections with their own duties. They have declared they will charge users 0.9 percent more, which the charge itemised on all telephone bills.
How will TVE fill the space previously taken by advertising, considering that only TVE1 currently uses 270 minutes a day?
Will programming be extended by nearly five hours? If so, how? Will the news last 60 minutes instead of the actual 45? Will news shows include self-promotion as does the BBC? Or will reporters produce more in-house series?
Little insight has been given. What we do already know are new obligations TVE will have to follow.
TVE is already forced to air more content on political debate and education, boost children’s programming and give access rights to social agents such as political parties and trade unions. The new public service will have to provide the Spanish cinema industry with 6 percent of its annual budget (at the moment set at 5 percent).
It will have limited access to sporting events, with the exception of the Olympic Games. It will be entitled to invest only up to 10 percent of its yearly expenditure, the equivalent of 120m euro, to buy TV rights for football matches.
The days of lavishing Trash TV are numbered.
No longer we will wonder if we watch it because it is offered or if is offered because we watch it. The new RTVE´s financing law will challenge Spanish state television to demonstrate it is capable of providing the viewers with content fostering the values of democracy, education, pluralism, culture and entertainment.
With no commercials.
Online advertising spending in the UK has overtaken television expenditure for the first time, a report has said.
Outlay grew 4.6% to £1.752bn between January and July, according to the study by the Internet Advertising Bureau and PricewaterhouseCoopers. The recession saw overall advertising slide by 16% in the period, according to the study.
E-mail campaigns, classified adverts, display ads and search marketing are all classed as online advertising. The body representing UK commercial television broadcasters said that the comparison was unfair.
The recession had accelerated the migration of advertising spending to digital technology – from more traditional media such as print, radio and television advertising to online, according to the report. Justin Pearse, editor of industry website New Media Age, said the tough economic times had led to a significant fall in TV advertising spending, which saw it being overtaken about a year earlier than most had expected.
“It had to happen eventually, but online advertising has been seen as the poor cousin to TV for so long that it’s still a huge milestone.” Technology firms were the biggest spenders on online adverts, making up about 19% of the market, the report said, followed by telecoms firms, the finance sector and entertainment and media. Online display advertising – such as banners – had “performed notably well against its peers in TV, print and radio”, said Guy Phillipson, chief executive of the Internet Advertising Bureau.
“We have a rollercoaster of a year ahead, but even in tough economic conditions, marketers still recognise the value, accountability and measurability of online advertising.”