NEWS18 April 2013

TV continues to dominate ad spend

Asia Pacific Europe Financials Latin America North America UK

Advertisers continue to gravitate away from newspapers and magazines and toward television according to media measurement company Nielsen.

In its Global AdView Pulse report, Nielsen found that TV accounted for 62.8% of 2012 global ad spend at $350bn representing a 4.3% year-over-year increase.

While ad spend in newspapers and magazines did dip, down 0.2% and 1.6% respectively, the mediums remained key for advertisers to communicate with newspapers coming in second with 19.5% of the share while magazines came third with 8%.

The report found that Latin America helped see a 21.2% rise in display internet ad spend with a 9.9% rise in the region whilst Europe was also notable with a 7.4% increase although its share of the ad spend market came in at 1.9%

Cinema ad spend continued to climb in 2012 according to Nielsen with the sector spiking at 6.1% for the year.

While cinema spending remains relatively small, accounting for just 0.3% of total ad spend in 2012, regions such as Europe with a 7.4% growth and Asia Pacific at 10.3% continued to contribute to the medium’s growing importance among advertisers looking to reach theatre-goers, the ratings company noted.

Outdoor ad spend grew by 7.7% to grab 2.3% of total global ad spend in 2012 while radio took a 5.2% share of total spend following a 6.1% rise last year.

Global head, advertiser solutions for Nielsen Randall Beard said: “With 63% of ad revenue being spent to advertise on TV, it’s clear that the medium is widely regarded as the most efficient and effective way to reach consumers and continues to grow, especially in emerging markets.”

Another report released today by Nielsen company Vizu and the CMO Council found that advertisers are changing their view on the internet with a shift to branding purposes rather than direct response.

Sixty-three percent of marketers though spending allocations to online brand advertising would grow in 2013 with one-in-five thinking it would exceed 20%.

However, 51% also expected spending on direct response to increase in 2013, although 41% said that their budget would stay the same.