Adverting market

opportunities for advertisers to defy in economic crisis

The advertising market in Italy and the rest of Europe has to face repercussions of economic crisis, a sharp drop in investments. To have an idea of the importance of this phenomena, it is enough to look at a decreasing trend in advertising investment, which dropped by 18.7% only in January.
Thus, the economic crisis is having a negative impact on this sector which is translated into a conservative behaviour of ad investors, an overall advertising budget cuts, and, importantly, a significant constraints on exploring broadband advertising. The last becomes one of the obstacles for further market development.

Nevertheless, some investments in advertising echoed in the market in 2008, if compared to the last year, allow to draw a general picture. It is obvious that, apart from radio, which has seen an increase of 2.3%, the only media that did signal a positive movement is Internet being up by 13.9%. Periodical and film have been dramatically cut down. However, it holds true also for TV advertising reaching a critical point with 1.2% decline from 2007, the tendency that is expected to prevail for the whole year for all media save Internet. As a matter of fact, the last continues to heat investment climate having investments to grow by 1.8% compared to 2007, an invincible upward trend for years. Starting from 2004 to date investments grew by 177%.
There different types of Internet advertising, however, AD banner proved to be the most popular form. AD banners’ advertising rose by 20% in 2008.

Which are the opportunities, if any, that Internet and broadband advertising have reserved for advertisers for the future? No doubt, it is a broadband demand that rapidly increases its pace dragged up by the rise in demand for video entertainment services, such as web TV, IPTV, HDTV, creating new contact points between advertisers and end user. In this light, a prudence should be given to the right evaluation of competitive advantage which coming advertising formats are said to deliver. The gist is that they allow to address a niche audience, highly differentiated and segmented, which traditional TV is deprived of.
One should not left out of consideration the promising opportunities offered by mobile broadband owing to the proliferation of handsets. This will definitely accelerate a wide use of services and growth of mobile networks. Such expectations inspires IT Media to expect the mobile advertising to grow by 76% in the next four years, up to 2.370 millions euro in 2012

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