Global adspend up 8.8% in Q1 2011: Advertisers push TV spend

According to the new Nielsen Global AdView Pulse report, television advertising rose 11.9% year-on-year and increased its share among other traditional media (radio, magazines, and newspapers) from 63.5% to 65.3% in both developed and many emerging economies.

"With US$6.50 of every ten dollars being spent on television, it's clear that TV remains the most important and cost effective advertising medium for companies looking to reach new consumers, especially in booming emerging markets," said Randall Beard, global head of Advertiser Solutions for Nielsen. "In fact, according to two Nielsen reports released last month, women globally said they preferred to find out information on new products and services via television more than any other medium, and the Q1 Nielsen Cross-Platform Report showed that Americans are watching more TV than ever before."

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Advertising in the world's largest market, USA, rose 5.9% to reach nearly US$27 billion in Q1 with stable increases for TV, radio and magazines; however, newspaper advertising dropped by more than 10% in another blow to the domestic newsprint industry. Newspaper advertising also declined -1.6% in Western Europe in Q1.

Emerging regions of Asia-Pacific (+12.4%) and Latin America (+11%) drove global ad growth in Q1, followed by Middle East/Africa which still increased 10.4% despite a 51.3% decline in Egypt's ad revenue as most companies temporarily halted advertising during the country's social and political upheaval.

Western Europe posted the lowest growth rate of all global regions in Q1 of 2.9% as the region's divergent economic performance sent ad spend in Greece, Ireland, Italy and Spain into negative territory - in contrast to double-digit growth in Europe's more robust markets of Turkey (+12.9%), France (11.6%), and Norway (+10.2%).

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Argentina (+37%) and South Africa (+34.8%) posted the highest year-on-year gains, while other emerging markets of China, India, Indonesia, Malaysia, Philippines and Saudi Arabia had double-digit gains in Q1.

Methodology

The external data sources for the other countries included in the report are:

• Argentina: IBOPE
  
• Brazil: IBOPE
  
• Egypt: PARC (Pan Arab Research Centre)
  
• France: Yacast
  
• Greece: Media Services
  
• Hong Kong: admanGo
  
• India: Nielsen in association with TAMIndia
  
• Japan: Nihon Daily Tsushinsha
  
• Kuwait: PARC (Pan Arab Research Centre)
  
• Lebanon: PARC (Pan Arab Research Centre)
  
• Mexico: IBOPE
  
• Pan-Arab Media: PARC (Pan Arab Research Centre)
  
• Portugal: Mediamonitor
  
• Saudi Arabia: PARC (Pan Arab Research Centre)
  
• Spain: Arce Media
  
• Switzerland: Nielsen in association with Media Focus
  
• UAE: PARC (Pan Arab Research Centre)

*Exchange rate at time of posting: US$=R6.75.