© 2010 Rapid TV News
Iñaki Ferreras ©RapidTVNews | 14-10-2009
Spain’s TV advertisement market will improve next year, but could have to wait another six years until final recovery starts.
Groupm forecasts that prices will go up by 13% next year after the suppression of advertising on national public broadcaster Televisión Española-TVE. But the economic crisis has caused a huge downturn in advertising investments during the last two years, with the cost of advertising down 50% between January 2008 and a year later alone. Groupm says that advertising investment must now be at its lowest point so it is now time to think of a slow recovery.
The market will start going back up again next year, increasing between 12% and 13% but never above 15%. In this context it is especially relevant that Corporación RTVE will continue running the advertisements the public company booked until August, which it will be able to commercialize until next December 31. While money RTVE won’t get should be distributed among other media such as the press, the internet and outdoor advertisement, some experts believe a few advertisers will keep their money until the economic situation gets better.
Between €100 million and €120 million out of €529 million of advertising should be spent at other broadcasters, according to TVE’s latest study about the future of the public broadcaster without advertising. Also between €120 million and €140 million will be distributed among other media but between €100 million and €220 million will disappear. TV as a media could lose three percentage points of advertising investment to fall to 40% of all receipts and the internet could reach 12%.
© Rapid TV News 2009
