Trends in Global Advertising

8/3/2019 Trends in Global Advertising

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Confidential & Proprietary Copyright 2008 The Nielsen Company

Global Advertising Trends


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Page 2 Confidential & ProprietaryCopyright 2008 The Nielsen Company

The Nielsen Experience November, 27th 2008

A global snapshot


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Global Trend New generation of

markets not yetup to strength

0

2

4

6

8

10

12

14

04vs03 Jan-Sep 08vs Jan-Sep 07

Source: The Nielsen Company estimation from different sources

05vs04 06vs05 07vs06

+13.7%

+10.0%

+8.4%

+4.7% +4.2%


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Breakdown by Quarter A lift due to theOlympics

TOTAL

1

st

Quarter

2nd Quarter

3rd Quarter

+4.2%

+4.7%

+1.5%

+5.1%

Source: The Nielsen Company (3rdQ covers July and August)

J F M A M J J A S O N D

2007

2008

Change % 2008 vs 2007 Advertising Expenditure Trend per month


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Breakdown by Region Asia Pacific

is the driver.Europe in pain.

TOTAL

NorthAm.

AsiaPac

Europe

+4.2%

+0.3%

+10.2%

-1.7%

Source: The Nielsen Company (3rdQ covers July and August)

North America: 37%

Asia Pac: 37%Europe: 26%

-127%26%EUROPEAFRICA

+235%37%ASIAPACIFIC

-138%37%NORTHAMERICA

DIFF.SHARE1st half 07

SHARE1st half 08

REGION

Change % 2008 vs 2007 Mkt Shares


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Breakdown by Media TV is the only

medium to gathermore share

Mkt Shares

TV: 60%

RD: 4%

NW: 24%

MG: 12%

TV

NEWSP.

MAGAZ.

RADIO

+5.7%

+0.0%

-2.0%

-0.9%

Change % 2008 vs 2007

Source: The Nielsen Company (Jan-Jun 2008 vs Jan-Jun 2007)


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Internet: a success story All brilliant growths

0

510

15

20

25

30

35

4045

50

FRA GER ITA NET SPA SWI UK SAF

Source: The Nielsen Company + TNSMI (France) + ArceMedia (Spain), Jan-Sep 08 vs Jan-Sep 07 Search engines not included

+36%+38%

+19%

+5%

+19%

+36%

+25%

+46%


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Breakdown by Category Retailers, Healthcare

and Entertainmentto push forward

-1.5

1.7

3.0

7.9

4.1

-1.8

6.3

-0.7

8.4

4.8

-1.5

-4 -2 0 2 4 6 8 10

TELECOMMUNICATIONS

MEDIA

INDUSTRY & SERVICES

HEALTHCARE

FMCG

FINANCIAL

ENTERTAINMENT

DURABLES

DISTRIBUTION CHANNELS

CLOTHING & ACCESSORIES

AUTOMOTIVE

Source: The Nielsen Company (Jan-Jun 2008 vs Jan-Jun 2007)

1

2

3

20% inshare


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Top Spenders FMCG, cars and TLCare the leaders1.

2.3.4.5.6.7.8.9.

10.

11.12.13.14.

15.

16.17.18.19.20.

PROCTER & GAMBLEUNILEVERFORDGENERAL MOTORSTOYOTADAIMLER CHRYSLERL'OREALAT&TJOHNSON & JOHNSONVERIZON COMMUNICATIONS

VOLKSWAGENMCDONALD'SRECKITT & BENCKISERGLAXO SMITHKLINE

HONDA

NESTLETIME-WARNERPEPSICOT-MOBILEKRAFT FOODS

Source: The Nielsen Company (Jan-Jun 2008)


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North America (+0.3%) Flat trend due to the

general softening ofthe economy

Source: The Nielsen Company, Jan-Sep 08 vs Jan-Sep 07 (USA, Jan-Aug 08 vs Jan-Aug 07)

TV is the only media growing.

Automotive (2nd biggestspender) is in deep crisis.

TLC is decreasing as well,

while FMCG and Media are

spending more than in 2007

No further impact of the crisis

in the last quarter: media are

already booked.

Waiting for the Black Friday

as an indicator of theshopping trends.

Canada usually lags the US

by six months.

+1.1%

+0.2%


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Asia Pacific (+10.2%) China is driving ahuge expansion

All media and all categories

are growing up. China is still sharply growing

but the Sichuan earthquake

had a heavy impact.

Australia marks a limited

growth due to the extremely

strong 2007.

Japan and S.Korea are

declining: the crisis makes a

bad trend worse. Olympic Games brought

beneficial effects, but for a

limited number of spenders.

-3.2%+17.1%

+4.4%

-3.3%

Source: The Nielsen Company, Jan-Sep 08 vs Jan-Sep 07


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Europe (-1.7%) A general decliningfor the big 5

Source: The Nielsen Company + Warc (France) + ArceMedia (Spain), Jan-Sep 08 vs Jan-Sep 07

All media go down in general,

though TV is positive inGermany and Italy.

Retailers are the only to

increase spend.

Low impact of the Euro Cup.

In the last quarter advertisers

cancel bookings: Print is

specifically affected.

Forecasts have been already

lowered due to the impact ofthe crisis.

Full year forecasts: Germany

-1%, Italy -1%, UK -5%.

-0.9%-16.2%

+0.8%

-3.5%

-0.3%


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Smaller countries

are better performing

Banks and insurance

companies expected to cutthe budgets since October.

Netherlands: TV will see a

decrease of 5-10% in Q4 2008.

Switzerland: last quarter is

significantly negative.

Turkey: advertisers are

moving investments from

big channels to thematic

channels. Price decrease and booking

cancellation in the last

quarter.

+4.0%

+3.8%

+7.8%

+8.1%

+0.9%

-22.3%

Source: The Nielsen Company + MediaXim(Belgium) + Research Intl (Sweden), Jan-Sep 08 vs Jan-Sep 07

Europe (-1.7%)


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Welke invloed heeft de kredietcrisis op de

internationale mediabestedingen?


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Economic environment Creepingglobal recession

The US fell into a recession in April and the downturn is expected to last 14

months (the longest contraction since the 16-month recession in 1981-1982).

The Euro zone is already in recession, usually defined as an economy shrinkingfor two consecutive quarters (Germany, Italy). Spain and UK will be the next.

Japan surprised markets with data showing the world's second-biggest economy

was in its first recession in seven years.


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Advertising market A difficult first half,hope for the second

ZenithOptimedia released new figures in October, downgrading its

forecasts of world adspend growth from +6.6% to +4.3% for 2008

and down from +6.0% to +4.0% for 2009.

There will be uncertainty. Advertisers will be prudent and cautious at

the beginning. The 1st half 2009 will likely be negative, as the 2nd halfmight bring the same level of 2008 or even a slight growth.

Overall automotive and the financial sector are expected tosignificantly cut their budgets. On the other hand, sales-driven

advertising (promotions, cut-prices) can find its way.


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A change in

communicationsstrategy

Luxury goods, travel and entertainment categories are expected to

be the hardest hit as consumers limit spending. This will be

reflected in the adspend, mostly for the mid-small companies.

The sales orientated media (Newspapers, Radio) might take advantage

from the crises, as advertisers have to sell their goods via price dealsusing a more tactical communication approach.

There will be pressure on prices. Some spenders will turn tocorporate campaigns to encourage brand loyalty more than

spreading the budget in several product campaigns.

Advertising market


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TV and Internet

as a shelter

When a conservative approach is wise, TV is considered the safest

place to advertise. Print will probably take the worst of it, suffering

spending declines. Radio will keep its place in most markets.

Internet has the chance to steal greater share as a result of the

financial shock: it is cool, it can be targeted, it can provide highlevels of measurability.

The use of the new media will keep on being expanded, though therewill be probably a slower pace. The tendency was seen before the

crisis: its not a new strategy but an ongoing process.

Advertising market


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Asia Pacific will

remain the driver

North America: the estimated growth is in line with 2008: +0.9%. In

the US the atmosphere is wait & see: Obamas first 100 days is

going to dictate 2009.

Asia Pacific: China will grow again by 10%, due to the extremely

strong domestic demand. Japan and S.Korea will sharply decline.Australia will have a soft 2009, after two strong years.

Europe: a general downsizing of the forecasts. Most countries areexpecting a flat trend but for the big ones a reduction of 1-2% is

more likely to happen, with different performances in the two halves.

Advertising market


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Final considerations

Source: Global AdView Pulse (2nded. 2008)

Adspend is an easy victim in the game ofsaving costs.

The easiest (maybe), not the best (for sure).

Giving up advertising investments means

losing market shares today, tomorrow and theday after tomorrow.


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Companies are trying to get visibility on thefuture. They are more prudent than panicking.

The role of the Media industry is to follow

them in this fasten your seatbelts process,

giving support and information.Information is always key in deciding.


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Advertisers behavior will be different as areaction to the economic environment.

Some advertisers will take advantage of a less

cluttered market getting more sov, others will

cut budgets.All of them will become more selective.


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Media plays a fundamental role in this processof fulfilling more demanding clients.

Quality is always appreciated. Quality is

always a key factor. Quality of the products,

quality of the service.Those who provide quality will win the game.


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Environment changes. Its changing now aswe speak.

Getting used to living and acting within an

atmosphere of change is the way to survive.

Flexibility, quickness, reactivity are notanymore an if but they are a must.




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The source of the data


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for more than80 countries.

Global AdView providesinternational advertising

information



Global AdView the mission


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Global AdView Pulse

RICH: analyzing the market by categories andadvertisers is a new perspective.

INSIGHTS: the support of providers which

represent the standards in the local advertising

environments can give the huge advantage of

having the actual pulse of the markets from the

inside. Forecasts will be included as well where

available locally.

EFFECTIVE: the product is thought to be visual

and through colours and graphs give the

immediate perception of what is happening.



Global AdView Pulse


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The Nielsen Company

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Integrated.

Thank You!

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Trends in Global Advertising