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.