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.
‘Black-ish’ grows against World Series Game 7
A buyer’s primer on out of home measurement
CBS’s challenge: Life after football
With mobile devices, we’re all different
Las Vegas: Political pulls in TV dollars
The new frontier: Digital out of home
‘The McCarthys,’ honed to a dull edge
For ‘Mom,’ a chance for a new start
So, who will win the November sweeps?
Game 6 surges to best viewership of World Series
Cable overnights: Duggar wedding lifts ’19 Kids’
‘Women of the Bible’ coming to Lifetime
‘MNF’ hits a season high on ESPN Deportes
- Kelly Smith-Dotson becomes CMO at Viad
- NY Times EVP of digital products Denise Warren exits
- Jessica Coen becomes contributing editor at Marie Claire
- Paul Smalera becomes ideas editor at Quartz
- Jeff Bercovici becomes San Francisco bureau chief at Inc.
- Katie Taplett becomes VP and GM at Defense News
- Writer Matt Taibbi exits First Look Media
- Jill Schwartz becomes head of development at High Noon Entertainment
- Hayley Kiyoko joins CBS's 'CSI: Cyber'
This week’s cable ratings
This week’s broadcast ratings
This week’s top movies, songs and books
This week’s daypart ratings
This month’s new media traffic data
This week’s younger viewer ratings
Media buyer wanted in Las Vegas
Junior media buyer opening in Venice, California
Media freelancer available for all markets
Media buyer job in Syracuse
Assistant media planner/buyer wanted in Austin