First Quarter Global Advertising Up 4% From 2007, Nielsen Report

China World’s Fastest-Growing Advertising Market;
Healthcare Sector Biggest Spender

New York, NY, July 21, 2008- In spite of mounting economic pressures, it appears the advertising world is still growing, according to latest figures from The Nielsen Company’s Global AdView Pulse report, which found that global advertising spend grew just over four percent in the first quarter of 2008. 

In the period from January to March 2008, ad spending in Africa grew by over 16 percent, and the Asia Pacific region recorded almost 10 percent growth. In the more developed regions of North America and Europe, growth was considerably slower – North America’s ad spending figures climbed by just 1 percent and remained flat in Europe (-0.4%). As a result these two regions lost one point of share respectively to Asia Pacific.

The Global AdView Pulse findings reveal significant variations in overall ad spending trends across the regions. North America¹ experienced slight total growth (1.2%), despite a softening U.S. economy and the recent Writers’ Guild of America strike. These negative factors were offset somewhat by political advertising related to the U.S. Presidential Elections.  Although Canada’s media environment was affected by the strikes, the stronger economic situation in Canada allowed the local advertising market to close the first three months of the year with a percentage growth higher than the one registered in the USA.

Of the three regions surveyed², Asia Pacific showed the most growth across the quarter, registering 10 percent³. All four major media types (Television, Magazines, Print and Radio) contributed to this growth. This region is expected to benefit further from economic development in fast-growing Asian markets. On the other hand, elements of uncertainty linked to the world economic situation and the increase in oil and commodities prices have reached Asian and Oceanian soil, and the effects of these pressures may slow this region’s overall upwards trend. The rise of ad spending in Asia Pacific has been attributed to strong growth in China, India and Indonesia; in other markets, growth remained flat. According to Nielsen analysts in China, the Chinese economy is expected to remain strong in 2008. Nielsen is forecasting increased growth this year, due to the popularity of Internet video advertising and local search.

The advertising market in Europe⁴ remained flat over the first quarter of 2008. Television, which accounts for almost 50% of total European advertising spend, is the only media type showing positive growth (+2.2%). The slow economic growth of many European markets and the effects of economic uncertainty have had an impact on advertising trends across the region, however there is an expectation that the recent UEFA Euro Cup 2008TM and the upcoming Olympic Games will have a positive influence on advertising spend in the second half of the year. According to Nielsen experts in Germany, the first three months of 2008 saw almost 30 million Euros being invested in campaigns with a direct or associated reference to the UEFA European Football Championship™ in that country. Even in oil-rich Norway, where the economy is going from strength to strength, there are now signs of more moderate development. According to market analysts from Nielsen Norway, the main drivers behind this moderation are a marked decline in economic growth among Norway’s trading partners, a stronger Krone and several interest rate rises in the past year.

South Africa’s⁵ advertising market grew a stunning 15.3 percent over the quarter. As usual, Television and print have the lion’s share, but Internet advertising is gaining momentum in this market, growing by a whopping 67 percent across the three-month period. According to Nielsen analysts, television viewing in South Africa may have been affected by a power crisis in early 2008, causing widespread blackouts across the country, however the extent of the impact is as yet unknown.

Globally, healthcare retains the majority share of ad spending, with just over 10% of all advertising activity. With nine percent of global consumers ranking their health as their biggest concern today⁶, we may see this figure continue to rise. Fast Moving Consumer Goods (FMCG) advertising spend is also growing at a significant rate (+6.7%), recording growth across all regions. Advertising spend in the Clothing and Accessories sector grew by 5.5 percent.

Television remains the highest-grossing medium for advertising spend, recording a 6.9 percent yearly growth rate globally and growth in every region. Television currently accounts for 60 percent of global ad spend. Newspapers, representing almost 24% of spend, remained flat (0.4%) and Magazines showed a slight decline globally (-0.9%). (See table "Global Advertising Trends" in Full PDF Download version of release.)

 

About Nielsen Global AdView Pulse

Nielsen Global AdView is the only global advertising trend report of its kind, providing market analysis down to category and advertiser level. Along with this analysis, the report provides insights from industry leaders. Data is collected from 26 markets spanning North America, Asia Pacific, Europe and Africa, and covers all major advertising types: TV, Print, Radio, Outdoor, Cinema and Internet. For more information or to order a report, please contact sarah.newell@nielsen.com.

About Nielsen Global AdView

Global AdView provides unparalleled insights into international advertising services. Global AdView provides information on how much an advertiser’s competitors are spending, and how they’re spending it. Global AdView tracks trends across more than 80 countries, complementing its global scope with complete local knowledge. Spend and creative content can be compiled, linked and harmonized at brand and product level to enable quick strategic insight into competitive activity within a client’s own product sector.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com

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