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.
Competition holds up against World Series
Ben Bradlee, in other people’s words
How the MRC investigates snafus
New York City: TV is suddenly tight
‘Celebrity Name Game,’ bubblegum
Tell us, what’s your take on Martha Stewart?
For ‘Newsreaders,’ a dash of the absurd
World Series posts new low for opener
KC agency to Royals: We’ve got your back
Cable overnights: ‘Sons’ stays even to last week
NBC comedy block declines on Tuesday
Univision’s ‘Corazon’ tops Hispanic broadcast
Huge Twitter crowd for BET Hip Hop Awards
- Brad Cohn becomes executive creative director at MRY West
- John Pucci rises to CMO and CCO at Hawthorne Direct
- Dave Hadden becomes UX designer at Digital Pulp
- Maura Fritz becomes editorial recruiter at Hearst Magazines
- Joe Weisenthal becomes markets managing editor at Bloomberg.com
- Jennifer Hitzges and Petra Kobayashi join Redbook
- Larry Fitzmaurice, Zara Golden and Khalila Douze join The FADER
- Jessica Hopper becomes editor in chief at The Pitchfork Review
- Mimi Gigoux becomes EVP of human resources at Criteo
- Samantha Glynne becomes VP of branded entertainment at FremantleMedia
This month’s new media traffic data
This week’s cable ratings
This week’s broadcast ratings
This week’s top movies, songs and books
This week’s daypart ratings
This week’s younger viewer ratings
Media freelancer available for all markets
Media buyer job in Syracuse
Assistant media planner/buyer wanted in Austin
Digital media buyer/planner job in Norcross, Georgia
Associate media planner wanted in Chicago