Spanish TV advertising to rebound
A new report from investment bankers Morgan Stanley says that TV advertising in Spain, which suffered badly during 2008-9, will again grow this year by about 10 per cent and achieve Europe’s strongest momentum. Elsewhere in Europe TV advertising will remain stagnant in France (around zero growth), an improving 2-5 per cent in the UK, 5-6 per cent in Germany and 3-4 per cent in Italy.
“Spain appears poised to experience good momentum again in 2011. Advertisers are braced for 10 per cent price inflation following market consolidation. They consider TV as the most efficient medium and are ready to see prices go up for another year after two years of deflation (2008-09),” says the bank.
As to the lacklustre forecasts for France, the bank’s report says: “Our contacts sound cautious on 2011 TV adspend even though 4Q10 is likely to have exceeded expectations.” The bank says the absence of World Cup soccer, the dropping of the French government’s ‘cash for clunkers’ campaign, will impact this year’s revenues.
The bank’s report says that ITV, the UK’s main commercial network, is making a strong impression. “Media buyers are generally positive on the new management at ITV. Advertising agencies like the new priorities set by ITV management. They expect more in-house produced content to come out of ITV and are seeing a clear desire to improve ITV.com. Agencies are already noticing some improvement. The quality of the offer on digital channels is seen as good. Adam Crozier is seen as very focused, defining clearly the group’s priorities and especially keen on assessing the level of talent within ITV. He has mandated the Boston Consulting Group to assess the quality of ITV’s sales house and is trying to tone down ITV’s perceived arrogance vis-a-vis media buyers.”