Are there REALLY fewer Ads?

You’ve heard the rumours that “times are tough”, “we’re in a recessionary climate”, and as a result ad expenditure is on the decline. Just how much truth is there to this, based on the current NZ market?

2008 saw our global friends in the US and UK hit hard in the fourth quarter, which accounted for overall ad expenditure decreases at 4% from 2007. Looking closer to home, our friends across the ditch posted large revenue growth in the first two quarters which resulted in an increase of 2% from 2007. NZ showed a decrease in ratecard expenditure by just 0.6% from 2007 – not a bad result from the little Island who could.

So has this fallout continued into 2009? Or have we remained “insulated” from the economic doom…

Overall ratecard expenditure is down just 1.9% for the period Jan-Jun YTD.

Television has had just a 0.61% decrease ($3,990,333) and is still retaining 54% share of the overall market.

Radio and Online are the success stories of 2009 with current ratecard expenditure levels showing a 9% ($11,729,885) and 12% ($2,866,933) increase Jan-Jun YTD respectively. Current overall share figures are at 11% (Radio) and 2% (Online).

Losses can be seen against all other media with Cinema (-25%), Outdoor (-13%) and Magazines (-11%) feeling the pinch. Newspapers follows next with a 5% decrease.

If we look at the Print category as a whole, the decrease is down at 16% or $21M of ratecard expenditure which has been lost within this category.

In terms of overall market share Press still retains 19%, Magazines 7%, Outdoor 4% and Cinema just under 1%.

So there we have it, overall ad ratecard expenditure is down by just 1.9%, what the actual hard loss to suppliers for this is yet to be determined, although given current deals available one would have to assume they are suffering.  What we can see is that advertisers are clearly still active and those with $$ to spend are making the most of this climate.

If one was to speculate what was in store for the future, one might believe that this trend will continue into Q3, with a change afoot in Q4 with the mass retail Christmas demand that we see each year – time will tell!

Notes:

Based on inclusion of monitored activity only, including unaddressed mail.

Source: Nielsen Media Research

One response

11 08 2009
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[…] Are there REALLY fewer Ads? […]

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