Advertising Market Publishing International 16
REGIONAL ADVERTISING MARKETS
Current trends
Publishing International asked the regional CEOs of Publicitas
about the current situation and future trends.
Anthony Turner Grace Palacios
aturner@publicitas.com gpalacios@publicitas.com
Europe The Americas
Anthony Turner Grace Palacios
What have been the main developments in the advertising market What have been the main developments in the advertising market
in your region over the past year? in your region over the past year?
The advertising market in Europe has continued its growth during 2007, The Americas have experienced the world-wide trend of steady growth
mainly thanks to the rapidly growing Central & Eastern European mar- and diversification of budgets into the digital advertising arena. This
kets and the increase in online advertising throughout Europe. Advertis- has impacted all media companies to accelerate their presence online
ing spending in Central & Eastern Europe is growing at double-digit rates by enhancing and focusing on delivering top-level content to attract
(15.2%) year-on-year thanks to its maturing media markets and the new new audiences into this new medium and retain and grow their exist-
EU memberships opening up new opportunities. ing universe.
The increase in broadband connections and wireless internet access has Newspapers in particular are engaging readers by providing content
driven the growth in the online market with UK, Germany, France and blogs and attracting a younger profile by delivering relevant and timely
the Netherlands leading the way. More sophisticated tools for measur- interactive information.
ing online efficiency and new European-wide research from the IAB are What are your expectations for 2008?
also making the online sector more accountable. The US market will most likely continue to be affected by the current
With more advertising investment migrating to the internet, the tradi- credit squeeze and continued slump in the housing market. Original pro-
tional media owners need to adapt their offers and focus on providing jections from Zenith Optimedia for a 3.3% growth in ad spend were just
quality content via various platforms to the consumers and sophisticated, downgraded to 2.5% growth in 2007. The current projection for total ad
integrated and measurable advertising solutions for the advertisers. Social spend in the U.S. for 2008 is at 4.2% but there may be a possible adjust-
networking sites, RSS, user-generated content, gaming and virtual worlds ment by year-end. In regard to Latin America where there is a current
are the current ‘hot’ topics amongst the advertisers and the media owners economic stability across most countries, the projected growth in 2007
whilst they compete in the increasingly fragmented media landscape. will be at the 6.3% range from the previous year, with a less accelerated
What are your expectations for 2008? growth of 6.8% in 2008.
The Beijing Olympics as well as the Euro 2008 Football in Austria and Swit- Which factors will have a major impact on the future developments
zerland are expected to provide a short-term boost for the European adver- in the market?
tising market. The turmoil of the financial markets in the UK is expected Undoubtedly online advertising growth will have a continued impact in
to have some effect on the growth but it’s too early to estimate on what the future. In the U.S. between 2006 and 2009, internet ad spend will
scale. Central & Eastern European markets are expected to continue their grow 85% and raise its market share from 6.1% to 9.5%. Internet advertis-
strong growth with more media and advertisers entering the market. ing in Latin America will significantly grow, particularly in Brazil, Mexico,
Online advertising will no doubt continue its steady growth across Eu- Argentina and Chile. PWC forecasts that during the next three years,
rope in 2008. According to Forrester Research, in five years time online online advertising expenditures in the region will grow at a compound
advertising spending in Europe is expected to have doubled to over annual growth rate (CAGR) of minimum 33%.
¤ 16 billion and to account for 18% of total media budgets in 2012. The As such the ability to incorporate a cross-media option among all tradi-
ongoing switch-over to Digital TV in most European countries is also tional media into a truly integrated communication solution, will ensure
expected to have a positive impact on TV advertising. the long-term success of traditional media companies throughout the
Which factors will have a major impact on the future developments Americas.
in the market?
Especially for the traditional media, innovation and creativity is the key
to surviving in this rapidly changing media landscape. New technology
is making ad avoidance much easier for the consumer, therefore finding
new ways of providing quality content and engaging with the consumers
in a non-intrusive way is increasingly important. ‘Green issues’ are also
becoming more and more important to the consumers and therefore the
advertisers will need to take this into consideration when creating their
messages and choosing their media. The development of the Central &
Eastern European market will continue to offer several opportunities for
media owners and advertisers, especially in online advertising.
AAU07_2722_Inhalt.indd 16U07_2722_Inhalt.indd 16 008.11.2007 13:49:53 Uhr8.11.2007 13:49:53 Uhr
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