Spanish tv advertising revenue may fall

Last year 2012, Spanish television channels broadcast 10% fewer advertisements than in 2011

Last year 2012, Spanish television channels broadcast 10% fewer advertisements than in 2011 – the first time for 10years that commercial ads have fallen from one year to another , according to Zenith Media. They reported that the number of advertising spots had up until 2012 been growing year after year, according to Neeo.es.In addition, the  advertising minutes per day dropped by 11%, all this is happening within a context where more tv channels than ever before are showing.

So far, the reduction in the number of adverts hasn’t negatively affected the number of advertising minutes watched by the viewers, however, which was 22 minutes per day, the same as in 2011; neither did it affect the gross rating point (GRP) earned by the advertisers with each ad.

Zenith Media pointed out that the reduction in the number of adverts coupled with no fall in GRP indicates the growing effectiveness of the advertisements by 10% during 2012. The reduction in the number of ads comes at a delicate time for the Spanish TV sector in which advertising investment in national TV channels has dropped more than 35% since 2007, according to the latest report by Infoadex. This is despite the fact the TV viewing hours are still growing,  this January being a  month with the second most TV consumption in the history of Spain. The price of advertising slots has fallen to try to keep the advertisers coming back.

As a consequence of this drop in advertising investment some TV channels have opted to drop their prices which may in turn reduce future advertising. Worrying times for the Spanish broadcasters.

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