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Advertising In Loss

  • Nielsen data related to advertising spending in Italy for January 2013 have been published.

The decline of the advertising market seems to not  stop during the month of January 2013: if during the first two months of 2012 the registered decrease was -5,7%, the first month of 2013 shows a loss of -15,3%. This data could be seen as positive if compared to the month of December 2012, during which the advertising spending recorded a decrease of -18%.

81 million euros: this is the amount of the investments taken from the advertising market but what are the media mostly affected? Newspapers and magazines report a variation respectively of -25% and -25,1%. Then we can find Out of Home TV (-20,8%), TV (-16,1%) and Direct Mail (-14%).

A far less reduction is registered by Radio which opens 2013 with a -2,2% and this is a fact definitely positive if compared to the decrease of -11,4%, observed during the last month of 2012. Investments for Transit Advertising remain unchanged from the previous period.

The media that show a growth in terms of advertising spending is Internet (+9,3%), which increase was not so high since July 2012, Cinema (+28,6%) thanks to the advertising planning made by the most popular automotive and pharmaceutical brands, and Outdoor Advertising up to +29,6% thanks to the electoral campaign.

Political elections occurred during the month of February 2013 have modified the scenario of the advertising market over the previous period, not only in terms of media employed but also if we analyze the phenomenon from the point of view of market sectors. Organization and institutions, in fact, grow by +56,4%.

Travel and tourism, a market sector which has always shown a positive trend, opens 2013 with an increase of +17,3% while, at the same time, all the other sectors begin the year in negative. The largest decrease during January 2013 is registered by household appliances (-54,2%), toys and school supplies market (-49,7%) and motorcycle and vehicles industry (-48,1%).

If we make a conjoint analysis and we take into consideration media and business sectors together, we can draw the following conclusions: GDO invests mostly in TV and less in Direct Mail. At the contrary, Direct Mail sees huge investments from the Personal Care Industry. Food and beverage seems to have shifted its spending from the TV to the Internet. Automotive shows the strongest growth on Radio and the lower one in Magazines while Organizations and Institutions invested more in Magazines, thanks to the political elections.

Top spenders reduced their investments mainly in Newspapers and Magazines (-41%) and this decrease is twice the average change of the medium which is -25%, and in Radio (-20%). On the contrary, top spenders invested on the Internet (+14,5%) and their spending is higher if compared to the total variation of the medium which is +9,3%.

Top spenders weigh on TV, Newspapers, Internet and Radio respectively upon 22%, 8%, 17% and 25%.

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