The recent announcement on the merger (better absortion) of La Sexta and Antena 3 has triggered the alarm at the Spanish Association of Advertisers (aea). The same had already happened ads were banned on TVE, or more recently when it was carried out the integration operation Tele5-Cuatro.
The controversy between the Association and TVE is not something new, there have been “sound battles” since the mythical times when there was just one TV channel (today it is called La1) in Spain, and with just three or four insertions everybody in the country knew about the latest launch.
The reason why aea and TV used to fight at that time was the price of the spots. Now the aea’s complaints are to do with other issues such as restrictions of the free competition in the television market or the menace of the “duopoly-sack man” at a national level. An important point for the advertisers that sell FMCG (fast moving consumer goods). And, of course, the advertisers feel concerned.
Should the merger be confirmed, there by next “idus Martii”, with the blessing of the competition Authorities in Spain -CMT (Telecommunications Market Commission), CNMV (National Exchange Commission)- and the shareholders of the incumbent companies; should the integration of La Sexta in Antena3 be confirmed now that the Zapatero Government awarded the “nihil obstat” to the multiplex transmission, the open broadcast TV field in Spain would change from four holders into just two, transforming this advertising market, once demand driven into a market highly concentrated on the offfer side.
And that pair of big private holders (Antena3 and Tele5) would control the 85.6 % of all the ad spend on TV, which, don’t forget, represents around 44% of the total investment. This is the true reason why the aea is in full cry over the merger between La Sexta and Antena3.
I do not know which the underlying reasons for this operation are, though I can guess. Nor do I know if La Sexta -as TV channel- is going to be closed.
Perhaps Antena3 intends to gain the 6.1 % audience share of La Sexta. The truth is that Antenna3 had been laggig behind, with only a 14% share, against the 18.8% of Tele5, and the 20.2 % of La1. And the fact is that the more audience a TV channel gathers the more adspend usually attracts. This is important specially if one takes into account that the money comming from advertising is the only revenue received by the open broadcasting TV channels in Spain.
Surely the merger comes due to other reasons that might have something to do with the use of the multiplex.
One can hardly believe that the operation is just aimed to let Antena3 absorb the audience of La Sexta. Because “not always three (of Antenna3) plus six of (the Sixth) make nine”.
May be the Spanish Association of Advertisers dramatises a little, as the aea still yearns for the times when advertising on TVE was allowed and calls whenever there’s an occasion for the return of the ads to its channesl (La1, La2 and others).
Complaining is aea’s role and right, although the Association is not exactly wrong this time, I’m affraid.
What amazes me, at least a bit, is the fact that other associations in the sector, such as media agencies associations, ad agencies associations other media associations, whose interests can be negatively affected by the merger, haven’t said even a word on the matter. At least as far as I am informed.
Image over the headline.- Adspend eaters. © Eastwind.
Related eastwind Marketing links (Spanish edition):
La aea previene contra la absorción de La Sexta por Antena3
(The Spanish Association of Advertisers prevent against Antena3-La Sexta merger)
