The Spanish Association of Advertisers (aea) estimates that the increase in the cost of television advertising espaces has been between a 30% and a 35% for the year 2010.
The rise in the insertion costs was foreseeable to come after the ad prohibition in the State TV channels (TVE), by the subsequent ad time reduction. It was evident.
The television continues to be, today, a marketing media too powerful for companies being able to do without it, despite the growth of other emerging media.
Of course, advertisers take this into account now that ad budgets in Spain do not grow or do it very little. After the downturn experienced in 2009 ad spend grew just a 1% in this European country during 2010 agAinst 2009, according to ZenithOptimedia and Ad investment increased a 3.9% in conventional media according to InfoAdex.
When the TVE advertising blackout came into force, marketing and advertising professionals wandered themselves which media or communication activities would earn the nearly €500 million, that used to be invested in the State television. While there are still no specific figures, one already find that a good part, if not all of the nearly €500 million cake, has been ‘eaten’ by the large price increases experienced in the time slots of the big TV chains with national coverage. Big TV chains rise their protest against this blame because, they say, price leves were too low. May be.
Anyway those are the things that usually happen in the market, whenever the offer gets reduced in about one third and the demand do not decreases in the same proportion.
This about 30% cut in the offer of time slots and turnover has made rise the prices in about the same percenteage. Logical, in a market economy.
By the way, after several years without attending the forums and assemblies of the aea, I’ve pleasantly noticed during the last one recently held in April, the high level of professional and social sensitivity in addition to the open mind with which the Association focuses on the problems facing the commercial communication in Spain.
This is perfectly compatible with the defence of the interests of its partners. At the end, media, agencies, advertisers and, even consumers share the same boat, when releasing and receiving the good advertising that benefits us all. Advertising, Yes!, thank you. Media, including the same TVE that now faces a deficit of €60 million, can tell and consumers that are open TV channels watchers can tell too.
Image over the headline.- Adspend eater. © Eastwind.
Related Eastwind Marketing links:
The aea, to the rescue
http://www.eastwindmarketing.es/blogs/eastwindmarketingycomunicacion/en/2010/09/25/the-aea-to-the-rescue/
Will ads feed TVE again after the tax veto by the EU?
http://www.eastwindmarketing.es/blogs/eastwindmarketingycomunicacion/en/2010/09/24/will-ads-feed-tve-again-after-the-tax-veto-by-the-eu/
ZenithOptimedia lowers the ad market growth forecast for 2011
http://www.eastwindmarketing.es/blogs/eastwindmarketingycomunicacion/en/2011/04/22/zenithoptimedia-lowers-the-ad-market-growth-forecast-for-2011/
