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.
Sad men: Agency morale falls off a cliff
On the horizon, layoffs at WSJ and Barron’s
‘Man With a Plan’ off to a decent start on CBS
Programming blog: What’s canceled and renewed
Here they are, this TV season’s biggest DVR gainers
For YouTube, a looming battle over music rights
NBA tips off with a rise in CPMs and tighter inventory
Media Life’s Digital Media Transparency Initiative
It’s here: Media Life’s new sports newsletter
Just what Fox dreamed of, a Cubs World Series
Big stink over another botched Rolling Stone story
A catalog of Donald Trump’s many Twitter insults
Nielsen: We’ll use PPMs to measure OOH TV viewing
- Brian McHale becomes SVP of information technology at CBS Radio
- Kieran Murray becomes Washington bureau chief at Reuters
- Allison Petty rises to digital and special projects editor at the Herald & Review
- San Francisco Chronicle metro columnist C.W. Nevius exits
- Craig Sager gets a pregame tribute from TNT
- Coming, a possible preview of Trump TV
- The word: Drew Barrymore getting a talk show
- ‘Tonight Show’ showrunner Josh Lieb exits
This week’s broadcast ratings
This week’s cable ratings
This week’s top-rated movies, songs and books
This month’s digital traffic data: August 2016
This week’s daypart ratings
This month’s new media traffic data
Search and analytics manager job in Columbus
Stamford agency needs a mass media manager
Media traffic specialist position in Stamford
Wanted: Cross channel media reporting analyst
Media research analyst opening in Stamford