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TV and newspapers report decline in ad revenues during Olympics TV and newspapers report decline in ad revenues during Olympics
(about 4 hours later)
UK TV and newspaper advertising revenues declined last summer during the period including the London Olympics, while, as forecast outdoor, advertising was significantly boosted. UK TV and newspaper advertising revenues declined last summer during the period including the London Olympics, while outdoor advertising was significantly boosted.
The big Olympic winner was, as expected, the outdoor advertising sector – including billboards, posters, taxis, buses – which reported an increase in revenues of 25.4% year-on-year in the three months to the end of September 2012 as advertisers flocked to book campaigns across the capital to cash-in on the millions of visitors. This is the largest rise seen in the outdoor sector since 2000.The big Olympic winner was, as expected, the outdoor advertising sector – including billboards, posters, taxis, buses – which reported an increase in revenues of 25.4% year-on-year in the three months to the end of September 2012 as advertisers flocked to book campaigns across the capital to cash-in on the millions of visitors. This is the largest rise seen in the outdoor sector since 2000.
Television advertising spend tumbled 7.2% year on year over the summer period, more than £200m less than brands spent in the second quarter.Television advertising spend tumbled 7.2% year on year over the summer period, more than £200m less than brands spent in the second quarter.
Total UK press advertising revenues – including national and regional papers and magazines – fell 9.6% year on year in the third quarter of 2012. But this was marginally better than the second quarter fall of 11.7% and the first quarter drop of 10%.Total UK press advertising revenues – including national and regional papers and magazines – fell 9.6% year on year in the third quarter of 2012. But this was marginally better than the second quarter fall of 11.7% and the first quarter drop of 10%.
Brands pumped money into TV advertising during Euro 2012 in the second quarter, most notably ITV, but pulled hundreds of millions of spend over the London Olympics as viewers flocked to the ad-free BBC.Brands pumped money into TV advertising during Euro 2012 in the second quarter, most notably ITV, but pulled hundreds of millions of spend over the London Olympics as viewers flocked to the ad-free BBC.
The £200m-plus fall in TV ad spend was the biggest factor in total UK ad spend growth being limited to just 0.8% growth in the third quarter of 2012, according to a report published on Wednesday by the Advertising Association and research company Warc. Total UK ad growth in the second quarter was 3.8%.The £200m-plus fall in TV ad spend was the biggest factor in total UK ad spend growth being limited to just 0.8% growth in the third quarter of 2012, according to a report published on Wednesday by the Advertising Association and research company Warc. Total UK ad growth in the second quarter was 3.8%.
However, these UK figures were still in stark contrast to the declining advertising markets across the rest of western Europe.However, these UK figures were still in stark contrast to the declining advertising markets across the rest of western Europe.
A report by Nielsen estimates that the Eurozone crisis saw an average cut in ad spend across western Europe of 4.8% year-on-year in the third quarter of 2012.A report by Nielsen estimates that the Eurozone crisis saw an average cut in ad spend across western Europe of 4.8% year-on-year in the third quarter of 2012.
In the UK, the Olympics effect failed to give national newspapers a year-on-year uplift in revenue growth, with ad revenue falling 4.8% in the third quarter.In the UK, the Olympics effect failed to give national newspapers a year-on-year uplift in revenue growth, with ad revenue falling 4.8% in the third quarter.
Nevertheless, this is a vast improvement on the 10.6% and 10.1% declines seen in the first and second quarters of 2012.Nevertheless, this is a vast improvement on the 10.6% and 10.1% declines seen in the first and second quarters of 2012.
Regional newspaper advertising fell 12.5% year on year in the Olympic quarter. In the first quarter, regional spend fell 11.7% and in the second 13.8%.Regional newspaper advertising fell 12.5% year on year in the Olympic quarter. In the first quarter, regional spend fell 11.7% and in the second 13.8%.
Internet ad spend also remained buoyant, up 10.9% year on year, which is in line with spend levels across 2012.Internet ad spend also remained buoyant, up 10.9% year on year, which is in line with spend levels across 2012.
The AA estimates that the UK ad market will grow by 3.1% year on year in 2013. TV will grow 2.1%, radio 3% and the internet 9.7%.The AA estimates that the UK ad market will grow by 3.1% year on year in 2013. TV will grow 2.1%, radio 3% and the internet 9.7%.
Outdoor advertising will fall by 2.8%, largely due to year-on-year comparisons with the growth in 2012, while press will fall 3.5% and the cinema market will decline 3.5%.Outdoor advertising will fall by 2.8%, largely due to year-on-year comparisons with the growth in 2012, while press will fall 3.5% and the cinema market will decline 3.5%.
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