European ad spending takes a dive
Falls 4.2 percent during 2012
April 12, 2013
The United States has largely recovered from the recession that dragged down ad spending in 2008 and 2009, finishing the past three years with advertising growth.
But Europe hasn’t been so lucky.
In fact, the situation in Europe is getting much, much worse.
The continent suffered a 4.2 percent decline in ad spending in 2012, according to data released yesterday by Nielsen. That’s much worse than the 0.3 percent decline Europe saw in 2011.
And it compares to a 3.2 percent worldwide increase in ad spending.
“Weak European economies are constraining ad spending in European countries,” says Brian Wieser, senior analyst at Pivotal Research Group.
Things got worse as the year closed. Ad spending was off 5.3 percent in fourth quarter, with the region continuing to battle problems on a number of fronts.
Unemployment in Greece grew to a record-high 27.2 percent, and the banking system in Cyprus essentially collapsed. The economies in Italy and Spain are suffering greatly.
And extreme winter weather cost the region some $1.8 billion in economic activity, finds a new report from Aon Benfield Group.
The problems made small ripples across the Atlantic, but the European difficulties shouldn’t curtail ad spending in North America, which grew by 3.1 percent last year.
“There is no meaningful impact of Europe’s issues on total U.S. advertising spending growth at this time,” Wieser says.
“Advertisers have generally reduced lead times for making budget commitments in most instances (excluding network TV buying) in order to maximize flexibility in the event of a truly contagious event, but the absolute budget growth is more closely aligned to the generally weak state of the American economy.”
Total global ad spending was up 2.5 percent in fourth quarter, following a 4.3 percent gain in second.
Every region except Europe was up for the full year, with Middle East/Africa leading with 14.6 percent growth, including a 20.4 percent gain for Egypt.
Digital advertising’s latest headache: Facebook
‘MacGyver’ makes a splash for CBS on Friday
Programming blog: What’s canceled and renewed
‘NBC Nightly News’ wins the 2015-16 season
New Thursday shows post ho-hum ratings
Readers: ABC will stay ahead on Friday nights
Readers: NBC will dominate a weak Sunday night
NFL viewership is down (but let’s not panic yet)
NFL lifts Major League Soccer to 12-year high
Rachel, with no raises, what perks should I ask for?
Tell us, what’s your take on late-night television?
Weekend TV: ‘MacGyver’ returns to CBS
Cable overnights: Yikes! Scary slide for ‘Horror Story’
- Carl Corbitt and Sherman Winfield join Fitzgerald & Co.
- Alex Kalluf becomes chief data officer at Joan
- Dolores Gavin becomes senior development executive at History
- Christa Babcock rises to VP of learning and certification at IAB
- Jane Pauley becomes anchor of 'CBS Sunday Morning'
- Phoebe Dynevor joins the cast of Crackle's 'Snatch'
This week’s broadcast ratings
This week’s cable ratings
This week’s top-rated movies, songs and books
This week’s daypart ratings
This month’s digital traffic data: June 2016
This month’s new media traffic data
Wanted: Media buyer in Providence, Rhode Island
Media buyer wanted in Savannah, Georgia
Needed: Digital media planner/buyer in NJ
Media planner/strategist job in Dallas/Fort Worth
Media planner opening in Chicago