The gross media spending of the telecommunications sector fell by almost 7% in the first two months of 2014 compared to the same period last year. Media spending on multiplay services (telephone + internet + television), which accounts for two-thirds of total gross media spending on telecommunications, fell by 1.6%. This is apparent from Nielsen’s Market Update Telecommunications.
Total gross media spending on telecommunications decreased in the first two months of 2014 to €45.5 million. Spending on multiplay services fell to just under €31 million. The gross media spending of cable operators and especially internet providers increased strongly.
The largest advertiser in the telecommunications sector is Vodafone, although spending fell by more than 15% to €10.3 million. At -35%, the decline in KPN’s gross media spending (€7.5 million) was even greater. Big gainers were Ziggo and UPC, which both spent about twice as much in 2014 as in the same period last year. It is striking that both parties have significantly increased their media budgets, while earlier this year it was announced that UPC parent Liberty Global is taking over competitor Ziggo.
Telecoms’ gross media spending on television fell by 9% in the first two months of 2014. The share of the largest medium type thus came to almost 38%. Although daily newspapers are still the second type of telecommunications medium with a share of almost 22%, spending fell sharply by almost 30%. Radio was used significantly more in 2014, spending rose by more than 75% to €8.6 million. The share thus grew from 10% in 2013 to 19% in the first two months of 2014.
Nielsen Holdings N.V. (NYSE: NLSN) is a global marketing information and research company with a leading position in marketing and consumer information, media and reach research, online intelligence and mobile measurement. Nielsen is active in approximately 100 countries and has headquarters in New York in the United States and Diemen in the Netherlands. For more information, visit www.nielsen.com.