Global Advertising Trends 2012


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Global Advertising Trends and Statistics 2012

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Global Advertising Trends 2012

  1. 1. Quarter 2 2012 INSIDE: Global Advertising Trends Trends by Media Type & by Category Sample of Full Report
  2. 2. Quarter 2 2012
  3. 3. © The Nielsen Company, 2012This report, in full or in part, cannot be reproduced or transmitted in any form or by anymeans without written permission of Nielsen, Media Group, Global AdView.While every effort has been made in the preparation of this report to ensure accuracy ofthe content, Nielsen, Media Group, Global AdView, cannot accept any liability in respectof errors or omissions or for any losses or consequential losses arising from such errorsor omissions. Readers will appreciate that the contents are only as up-to-date as theiravailability and compilation and printing schedules will allow, and are subject to changeduring the natural course of events.
  4. 4. WORLD TRENDSYear to date
  5. 5. Global Advertising TrendsYear to dateMain Events ADVERTISING EXPENDITURE TREND• Global online consumer confidence Million USD decreases three index points in Q2 2011 60000 2012 to 91 2012• Discretionary spending and saving 50000 decreased globally across all sectors, with more than two-thirds 40000 of consumers changing spending 30000 habits to save on expenses $266• The Euro zone crisis continues to 20000 billion worsen, combined with a downward 10000 GDP revision from the economic powerhouse China 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMain Facts• Advertisers continue to spend cautiously during the first half of YEAR ON YEAR % CHANGE BY MONTH 2012, though budgets are on the upswing by +2.7% 4.6 4.0• North America continues to trend 3.1 2.7 positively, increasing ad budgets by 2.4 2.4% 1.7• Europe, on the other hand, makes 0.6 deeper cuts in advertising budgets—ending the first half of Year to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 with a -2.7% decrease in date spending vs. 1H 2011 MACRO ECONOMIC TRENDS • GDP (constant prices)* + 3.5% • Consumer Prices** + 4.0% • Nielsen Consumer Confidence Index: 91** (-3 compared to Q1 2012) *2012 vs. 2011 forecasts **Q2 2012 surveyCopyright © 2012 The Nielsen Company.6
  6. 6. Global ad spend consumer confidence decreased three index points in the second Middle East’s growth is in part due to the low base of comparison againstincreases 2.7% in quarter to 91 amid worrying economic the first half of 2011—when the Arab signals from Europe, China, and a Spring rocked both the economies1H 2012 stalled U.S. job market. and advertising markets of many countries in the region.Global ad spend totaled USD 266 Though advertising budget cutsbillion in the first half of 2012, showing continue to run rampant in Europe Trends to Watcha 2.7 percent increase over the same (down -2.7% in 1H 2012 vs. 1H 2011), Though second quarter advertisingperiod in 2011.* Increases were advertising expenditures in North growth was more tempered than therelatively contained when compared America showed positive trends in the first, the month of June showed thewith the difficult first half of 2011, rife second quarter, ending the first half of highest percentage growth trend forwith natural disasters, political 2012 with a +2.4 percent increase Q2 (+3.1%).uprisings, and the ripple effects of over a year earlier. The increase is in part attributable to a 12.4 percent Nielsen will watch to see if thesefinancial crises in both Europe and the increase in Industry & Services upward trends, combined with theUnited States. advertising during Q2, which includes London 2012 Olympics and the run upClearly both advertisers and government and political advertising to the U.S. president election, areconsumers are proceeding cautiously in advance of the U.S. presidential sustained in the third quarter—in an uncertain economic election in November. potentially providing positive impactsenvironment, where even economic to the global advertising market.powerhouses like China are facing Emerging markets of Latin Americadownward GDP revisions and (up 6.9%) and the Middle East &unprecedented advertising budget Africa (up 21.1%) led growth duringcuts. According to Nielsen, global the first half of 2012, though the * based mainly on published rate cardsREGIONS -- YEAR ON YEAR % CHANGE 2.7 2.4 2.3 -2.7 6.9 21.1 Global North America Asia Pacific Europe Latin America Middle East & Africa Copyright © 2012 The Nielsen Company. 7
  7. 7. GLOBAL TREND – OVERVIEW BY REGION AND COUNTRYYear on Year % Change, YTD GLOBAL 2.7 North America 2.4 Canada -1.3 United States of America 2.7 Asia Pacific 2.3 Australia -4.7 China -1.3 Hong Kong 13.3 Indonesia 25.8 Japan 4.7 Malaysia 1.7 New Zealand 10.9 Philippines 11.0 Singapore 3.5 South Korea -3.3 Taiwan -2.1 Thailand 5.9 Europe -2.7 Croatia -2.4 France 1.2 Germany 0.5 Greece -26.1 Ireland -6.6 Italy -9.4 The Netherlands -4.3 Norway 3.4 Portugal -4.8 Spain -14.9 Switzerland 1.3 Turkey 13.1 United Kingdom 0.2 Latin America 6.9 Argentina 16.4 Brazil 10.1 Mexico -6.0 Middle East and Africa 21.1 Egypt 64.9 Kuwait 0.5 Lebanon -3.9 Pan-Arab Media 34.4 Saudi Arabia 12.0 South Africa 9.6 United Arab Emirates 5.8Copyright © 2012 The Nielsen Company.8
  8. 8. Media Types MEDIA -- % CHANGE YEAR TO DATEThough advertising budgets are onthe rise (up 2.7% in the first half of2012), advertisers appear to bechoosing their mode ofcommunication carefully in order tore-engage with consumers. Whencompared with the trends seen in the 3.1% 6.6% 4.7% 1.6% Television Radio Outdoor Newspapersfirst quarter, most of the media typesshowed more contained increasesduring the first half of 2012—with theexception of Television. -1.3% 7.2% 5.9%Television advertising, whichincreased 2.8 percent year-on-year inthe first quarter, saw a 3.1 percent Magazines Internet Cinemaincrease in advertising expendituresfor the first half of 2012. Televisionincreased by 4.0 percent in NorthAmerica, driven by a 4.2 percentincrease in ad spend from the U.S.The Middle East & Africa saw asignificant increase in Television adspend of 30.1 percent during the firsthalf of 2012, as Egypt’s advertisingmarket rebounded from last year’sArab Spring.Both Newspapers and Magazines, onthe other hand, saw budget cutsduring the second quarter, thoughNewspapers still trended positively forthe first half of 2012 (+1.6%).Every single market monitored inEurope, with the exceptions ofNorway and Turkey, recorded adecrease in Newspaper advertisingspend. Copyright © 2012 The Nielsen Company. 9
  9. 9. Media Types - continued MEDIA -- % SHARE OF SPEND -- YEAR TO DATEThough representing a smaller share 0.3 2.6of spend at 5.2 percent, Radiocontinued to see increases in everyregion across the globe, with a 4.3percent increase in North America 8.0and a slight 0.8 percent increase inWestern Europe. The emergingmarkets of Latin America (+12.7%)and the Middle East & Africa 19.9(+24.8%) saw more significantincreases for this medium. 61.4Online ad spend (specifically displayadvertising) contributed to the growth 5.2 2.6momentum around the globe, with a+7.2 percent increase recordedglobally. Global growth was slightlytempered, however, due to adecrease in Internet ad spending inChina—an effect of overall advertisingbudget cuts in that market. Television Radio Outdoor Newspapers Magazines Internet CinemaMEDIA BY REGION – YEAR-ON-YEAR % CHANGE, YEAR TO DATE 11.2 4.3 4.0 0.4 0.8 0.8 2.8 -2.1 -2.2 40.2 -3.9 -5.2 -6.9 16.7 38.8 6.5 6.3 2.9 1.4 20.6 30.3 30.1 24.8 12.7 0.0 5.0 5.3 6.8 6.2 4.7 0.2 -21.1 -19.1 Cinema Internet Magazines Newspapers Outdoor Radio TelevisionCopyright © 2012 The Nielsen Company.10
  10. 10. Macro Sectors SECTORS -- % SHARE OF SPEND -- YEAR TO DATEThough many sectors are spendingcautiously within an uncertaineconomic environment, 5.6 8.2Telecommunications companies 3.3continued investing significantly more 7.6 5.2on advertising than they did last year.Increasing spending globally by +7.9 4.9percent, the Telecommunications 11.0sector saw the most considerableincreases in emerging markets like 11.9 10.1Latin America (up 32.5%) and theMiddle East & Africa (+28.3%). 5.4After more cautious spending duringthe first quarter, the Automotive 24.6sector also boosted spending by 6.3percent during the first half of 2012compared with the same period lastyear. Even in the embattled region of Automotive Clothing & Access. Distribution DurablesWestern Europe, advertising Entertainment Financial FMCG Healthcarespending increased by +1.4 percent Industry & Serv. Media Telecom.when comparing 1H 2012 to 1H 2011.SECTORS -- % CHANGE YEAR TO DATE TELECOMMUNICATIONS TELECOMMUNICATIONS 7.9 increases ad spend by 7.9% in AUTOMOTIVE 6.3 1H 2012 Sector sees the most considerable ENTERTAINMENT 5.0 increases in the emerging markets MEDIA 4.9 of Latin America and the Middle East & Africa DISTRIBUTION CHANNELS 4.9 FINANCIAL 4.5 FMCG 4.3 CLOTHING & ACCESSORIES 2.8 HEALTHCARE -1.2 INDUSTRY & SERVICES -1.4 DURABLES -4.4 Copyright © 2012 The Nielsen Company. 11
  11. 11. CATEGORIES RANK AND % SHARE OF SPEND, YTD 1 Healthcare 10.1 2 Cosmetics & Toiletries 8.8 3 Automotive 8.2 4 Food 7.7 5 Media & Publishing 7.6 6 Entertainment 6.5 7 Drink 5.8 8 Telecommunications 5.6 9 Financial 5.4 10 Distribution Channels 5.2 11 Institutions 4.7 12 Industry, Agriculture & Property 3.4 13 Clothing & Accessories 3.3 14 Transport & Tourism 2.9 15 Furnishings & Decoration 2.6 16 Leisure Products 2.6 17 Business Services 2.3 18 Housekeeping Products 2.2 19 Information Technology 1.2 20 Domestic Appliances 1.1 21 Energy 0.6 22 Tobacco 0.1 TOP 20 GLOBAL SPENDERS, YTD 1 PROCTER & GAMBLE 11 HONDA 2 UNILEVER 12 VERIZON COMMUNICATIONS 3 L’OREAL 13 KRAFT FOODS 4 FORD MOTOR 14 JOHNSON & JOHNSON 5 TOYOTA MOTOR 15 TIME WARNER 6 GENERAL MOTORS 16 NISSAN 7 VOLKSWAGEN GROUP 17 RECKITT BENCKISER 8 AT&T 18 CHRYSLER 9 MCDONALD’S 19 THE COCA COLA COMPANY 10 NESTLE 20 UNIVERSALCopyright © 2012 The Nielsen Company.12
  13. 13. MethodologyThe information included in this report The Media Group within Nielsen, ishas been compiled, harmonized and the data source for the followingproduced by Nielsen Media Group, countries:Global AdView. • Australia • NorwayThe Nielsen Global AdView Pulse • Canada • Philippinesreports on advertising expenditure for • China* • SingaporeArgentina, Australia, Brazil, Canada,China, Croatia, Egypt, France, • Croatia** • South AfricaGermany, Greece, Hong Kong, • Germany • South KoreaIndonesia, Ireland, Italy, Japan,Kuwait, Lebanon, Malaysia, Mexico, • Indonesia • Switzerland***The Netherlands, New Zealand, • Ireland (Republic of) • TaiwanNorway, Pan-Arab Media, Philippines,Portugal, Saudi Arabia, Singapore, • Italy • ThailandSouth Africa, South Korea, Spain, • Malaysia • TurkeySwitzerland, Taiwan, Thailand,Turkey, the United Arab Emirates, the • The Netherlands • United KingdomUnited Kingdom, and the United • New Zealand • United States of AmericaStates of America.Pan-Arab Media refers to the mediaoutlets in the Middle East that havesignificant viewership, readership orlistenership in two or more marketsand are not localized to only onemarket in the region. They do notrepresent a duplication with thecoverage of each country and gathera significant amount of the advertisingin the region.* Provided by Nielsen CC Data** AGB Nielsen in association withIpsos*** In association with Media FocusCopyright © 2012 The Nielsen Company.14
  14. 14. MethodologyThe data sources for the other about their confidence levels and MAP OF THE REPORTcountries included in the report are: economic outlook. The Nielsen • World Trend: this section includesArgentina: IBOPE Consumer Confidence Index is all territories and relates to theBrazil: IBOPE developed based on consumers’ following media types : Television, confidence in the job market, status of Newspapers, Magazines, Radio,Egypt: PARC (Pan Arab Internet, Outdoor, and Cinema. Research Centre) their personal finances and readiness • Regions: this section includesFrance: Yacast to spend. The sample has quotas spend on Television, Newspapers, based on age and sex for each Magazines, Radio, Internet,Greece: Media Services country based on their Internet users, Outdoor, and Cinema. Each regionHong Kong: admanGo is weighted to be representative of includes the following countries:Japan: Nihon Daily Tsushinsha – North America: Canada, United Internet consumers, and has aKuwait: PARC (Pan Arab maximum margin of error of +0.6%. States of America. Research Centre) – Asia Pacific: Australia, China,Lebanon: PARC (Pan Arab Hong Kong, Indonesia, Japan, Figures are expressed in Million USD Malaysia, New Zealand, Research Centre) and are gross except for Australia, Philippines, Singapore, SouthMexico: IBOPE Ireland, and the UK which are Korea, Taiwan, Thailand.Pan-Arab Media: estimated net at source, and France, – Europe: Croatia, France, PARC (Pan Arab Germany, Greece, Italy, the Germany, Greece, Ireland, Italy, Research Centre) Netherlands, Spain, Taiwan, and The Netherlands, Norway,Portugal: Mediamonitor Portugal, Spain, Switzerland, Turkey—to which Nielsen Global Turkey, United Kingdom.Saudi Arabia: AdView estimated weighting factors – Latin America: Argentina, Brazil, PARC (Pan Arab are applied. USA and Spanish figures Mexico. Research Centre) are based on apples-to-apples – Middle East and Africa: Egypt,Spain: Arce Media comparisons to the previous year, Kuwait, Lebanon, Pan-ArabUAE: PARC (Pan Arab both in terms of coverage and Media, Saudi Arabia, South Research Centre) methodology, in order to give a more Africa, United Arab Emirates. accurate representation of the trends. Note: Pan-Arab Media refers to the mediaThe source for the macro-economic The source for the exchange rates is titles in the Middle East that have significantindicators is IMF (International OANDA (website: ) viewership, readership or listenership in two orMonetary Fund) – World Economic and the rate applied to all figures is more markets and are not localized to only one market in the region. They do not represent aOutlook April 2012 (website: the 2011 yearly average. duplication with the coverage of each and gather a significant amount of the advertising in the region. In order to reflect the most accurateThe Nielsen Global Online Survey picture for media type trends and(source for the Nielsen Consumer macro-sector trends, the methodologyConfidence Index), was conducted used for each may differ. Adjustmentsbetween May 4 and May 21 2012 and and estimates necessary to representpolled more than 28,000 consumers in the media type trends accurately may56 countries throughout Asia Pacific, not be suitable for the macro-sectorEurope, Latin America, the Middle trends. In some cases a directEast, Africa and North America comparison is therefore not possible. Copyright © 2012 The Nielsen Company. 15
  15. 15. • Country breakdown refers to all Macro-sectors and Categories are major media types available in the harmonized in order to allow country (Television, Newspapers, consistency of comparison between Magazines, Radio, Outdoor, regions and countries. They may Cinema, Internet). therefore differ to how the local• Macro-sectors include the sectors and categories are built. following Categories: – Automotive: Automotive • Top 20 Global Spenders: this – Industry & Services: Business ranking has been compiled to show Services, Property, Institutions, the top 20 spenders at Power & Water corporate/holding company level. Using each of the businesses – Clothing & Accessories: comprising these international Clothing & Accessories corporations at a local level the – FMCG: Cosmetics & Toiletries, cumulative total has been reported. Drinks, Food, Housekeeping The top 20 global spenders rank is Products, Tobacco based on the Nielsen countries – Distribution Channels: included in this review plus Spain, Distribution Channels (including Portugal and Hong Kong. For the also: Mail Order, Multiple Product remaining countries the advertiser Retailers, On-line shopping & detail is not available in a way that generic on-line services, can be included in the global Corporate/Image and sponsorship ranking. Distribution Channels) – Durables: Domestic Appliances, Furnishings & Decoration, Information Technology – Entertainment: Entertainment, Leisure products, Transport & Tourism – Financial: Financial – Healthcare: Healthcare – Media: Media & Publishing – Telecommunications: TelecommunicationsCopyright © 2012 The Nielsen Company.16
  16. 16. Quarter 2 4 2011 Quarter 2012 SNEAK PREVIEW Get a taste of the regional and country insights from the full version of Nielsen Global AdView Pulse
  17. 17. Middle East & AfricaRegion OverviewHighlights MARKET -- ADVERTISING EXPENDITURE TREND• Ad market posts a 21.1% increase during the first half of 2012—mainly Million USD 2011 due to a low base of comparison 3000 2012 with 1H 2011 2500• Growth is due to rebound of Egypt ad market and growth of Pan-Arab 2000 Media• Instability still reverberates within 1500 the region, as Syria’s civil war 1000 $8.7 enters its second year billion 500After a particularly difficult politicaland economic period during the first 0half of 2011, the Middle East & Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAfrican ad market during the first halfof 2012 shined in comparison—posting a 21.1 percent increase in COUNTRIES -- % SHARE OF SPEND -- YTDspending compared with 1H 2011.Main drivers of the growth were therebounds in the markets of Egypt, up 5.964.9 percent, and Pan-Arab Media, up 8.334.4 percent during the first half of 5.1 Egypt2012. 2.2 KuwaitInstability still reverberates in the Lebanonregion, however, as Syrias civil war 24.7 Pan Arabhas now continued into its second Mediayear. Impacts of the instability are Saudi Arabiaimmediately reflective in neighboring SouthLebanons advertising market, with Africa 8.3 45.6budget cuts of -3.9 percent seen UAEduring the first half of 2012. Accordingto the Pan Arab Research Centre,advertisers are increasingly looking tothe multi-market Pan Arab Media fortheir advertising—seen as a morestable investment than the singlemarkets. Full report includes: Regional & Country Trends by Month, Quarter, Media Type, Sector & CategoryCopyright © 2012 The Nielsen Company. Top Advertisers by Country and Globally18
  18. 18. South KoreaCountry OverviewCOUNTRY FACTS CONSUMER CONFIDENCE INSIGHTSPOPULATION49,136,000GDP in BILLIONS SOUTH KOREA 501,119,965 South Korean WonGDP PER CAPITA22,793,334 South Korean WonINFLATION 3.4 percentCURRENCY1 South Korean Won = 0.0009 +1 from Q1USD Source: Nielsen Consumer Confidence Index, Q2 2012MACRO ECONOMIC TRENDS GDP (at constant prices) vs. Inflation (consumer prices) – year-on-year % change 7.0 GDP 6.0 CP 5.0 4.0 3.0 2.0 1.0 0.0 2009 2010 2011 2012 2013 2014 Copyright © 2012 The Nielsen Company. 19
  19. 19. South KoreaCountry Overview ADVERTISING EXPENDITURE TRENDHighlights• South Korean economy impacted 2011 600 by Europe’s economic woes—Q2 expands a mere 0.4% year-on-year 2012 500• Ad market mirrors economic troubles, posting a -3.3% decline in 400 the first half year• On an optimistic note, a 300 quarter-on-quarter increase of 15% $2.5 was seen between Q2 2012 and Q1 200 billion 2012 100South Korea’s economy expanded0.4 percent year-on-year during the 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Decsecond quarter of 2012, adverselyimpacted by Europe’s economicwoes. According to Reuters, analystsbelieve that an additional interest ratecut will be required to spur growth, METHODOLOGYthough they neglected to forecast • Media covered: Television, Newspapers, Magazines, Radiowhen South Korea’s economy wouldbegin to recover. • Figures: grossThe advertising market mirrored the • Cost estimates are calculated at rate cardtroubles in the economy, posting a-3.3 percent decline in spending NOTESduring the first half of 2012. On a • No change in coverage or methodology for this quartermore optimistic note, aquarter-on-quarter increase of 15percent was seen between Q2 2012and Q1 2012.Advertising – Year-on-year % change by Media TV MG NP RD TOT TV MG NP RD TOT TV MG NP RD TOT 21.5 16.0 14.6 10.2 9.3 5.0 5.2 0.8 -1.1 -3.5 -3.4 -6.5 -8.8 -11.4 -22.4 2009 vs 2008 2010 vs 2009 2011 vs 2010Copyright © 2012 The Nielsen Company.20
  20. 20. Quarter 2 4 2011 Quarter 2012 What you get 4 times a year: • Over 250 pages of data, analysis, and commentaries covering over 35 markets • Analysis by quarter and year-to-date • 1 hard copy and electronic copy of the Nielsen Global AdView Pulse Report • Data source file in Excel • Early Indicator Study ORDER NOW Address T +31 (0)20 398 8777 Global AdView F +31 (0)20 398 8553 Nielsen Diemerhof 2 E globaladview@nielsen.com1112 XL Diemen W www.nielsen.comThe Netherlands
  21. 21. NIELSEN GLOBAL ADVIEWCopyright © 2012 The Nielsen Company.22
  22. 22. ContactE-mail globaladview@nielsen.comNielsen Global AdViewNielsen Global AdView provides information on what advertisers are spending, whereand how, in more than 80 countries. With a deep and complete knowledge of localmarket advertising trends, ad spend, creatives, and TV gross rating points (GRPs) canbe compiled, linked and harmonized at brand and product level to enable quick strategicinsight into competitive activity within a client’s own product sector.Media GroupOne of the major businesses of Nielsen, the Media Group is active in 40 markets offeringtelevision, radio and outdoor audience measurement, print readership, advertisinginformation services and customized media research. The Media Group of Nielsen is therecognized market standard for media information in the largest advertising territories.Thanks to the local presence of our own branches in more than 20 of the world’s leadingadvertising markets (including North America, Europe, Asia Pacific and Africa) we canmeasure expenditure and creatives daily, providing an always open window on the worldof media.NielsenNielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement companywith leading market positions in marketing and consumer information, television andother media measurement, online intelligence, mobile measurement, trade shows andrelated properties. Nielsen has a presence in approximately 100 countries, withheadquarters in New York, USA and Diemen, the Netherlands. For more information,please visit Copyright © 2012 The Nielsen Company. 23
  23. 23. Address Global AdView Nielsen Diemerhof 2 1112 XL Diemen The Netherlands Postal Address Global AdView Nielsen P.O. Box 22609 1100 DC Amsterdam ZO The Netherlands T +31 (0)20 398 8777 F +31 (0)20 398 8553E W