Adspend breaks R20bn barrier
ADVERTISING EXPENDITURE broke through the R20bn barrier last year, though it grew at a slower pace than previously, gearing down from 23,1% in 2004 to 17,2% in 2006. That’s according to Nielsen Media Research. Fastest growing of the major media was outdoor and out-of-home, currently the most dynamic category, which has lifted its share of market from 4,6% to 5,1%.
Clear Channel Independent MD Bazil Lauryssen says outdoor has become a much more competitive and dynamic medium than it was. “Our thinking has become a lot more short term and tactical. Previously, contract advertisers would tie up a site for years. Now the site is more readily available, which attracts new advertisers.
“A lot of new advertisers are spending money on the medium by advertising luxury goods, financial services, motor vehicles and cellphones, whereas previously they didn’t think beyond TV or radio. They have more than made up what we lost when tobacco advertising was banned.
“The industry has become more innovative, credible and professional, both in its products and its approach to selling. Audience measurement launches in April, making it possible to compare our performance on gross rating points basis against TV or radio.”
Also racing ahead of the average was TV, which expanded by 21,8% – bringing it close to overtaking the slower-growing print category. The seeds of future trouble for print are apparent in the evidence from the magazine category. There’s been an explosion of new magazines launched – as shown by the 123 new titles, almost all of them magazines, registered with the Audit Bureau of Circulations last year. But adspend grew at a relatively pedestrian 15,7% – not enough to sustain all the new mags.
Looking healthier is the newspaper category, where there are very few new titles but a faster growth rate in adspend.
Another rapid riser was the Internet, which enjoyed a growth rate of almost 24% but off a very low base. At R174m in adspend, it’s not an advertising medium that can be taken seriously yet.
Cinema showed a huge drop, but that has to do with anomalies in measurement.