February 13, 2011

Advertising markets grew by four per cent in 2010 in Western Europe, recovering from the 2009 recession. This recovery was patchy, however: it was strong in UK, but Greece, Spain and Ireland were still in recession. We forecast average ad growth to continue to grow in 2011 but there is a risk of 'double-dip' in some countries.

This report is an extract from Screen Digest's quarterly 'European Advertising Market Monitor'. It focuses on Western Europe's Big Five markets, looking at economic climate and advertising markets. After a dreadful year 2009, advertising spending and media owners' revenues grew by four per cent in 2010 in Western Europe. It was not quite enough to offset the heavy losses of 2009 (-11.7 per cent). This recovery was patchy, however. According to our estimates, advertising growth was above 6% in UK, France, Norway and Sweden, but Greece, Spain, Denmark, and Ireland were still in recession. The lack of economic dynamism will not allow further ad acceleration in 2011. We forecast average ad growth to grow to 2.9% but there is a risk of double-dip in countries affected by financial turmoil (Spain) or intense fiscal austerity (UK). Television was a big driver in 2010 (+7.7 per cent, mostly due to media inflation), but internet will be the main force in 2011 (+10.2%).

Highlights:

• Advertising revenues grew 4.1 per cent in 2010 in Western Europe.
• The lack of economic dynamism will not allow further ad acceleration in 2011: +2.9%.
• Television was a big driver in 2010 (+7.7 per cent), but internet will be the main force in 2011 (+10.2%).

Tables and charts included:

• Total advertising growth (2010-2011, big five + Western Europe averages)
• Economic and advertising growth (2010-2011, big five + Western Europe averages)
• GDP forecasts
• Unemployment

Pages: 9

Tables & charts: 8

Tags: