Marketing spending plummets in France

24 March 2010

PARIS: The French media and marketing industries both endured substantial declines in their revenues last year, a new study has reported.

Research firm IREP and France Pub, the media measurement company, joined forces to produce an overall assessment of the French communications sector in 2009.

IREP tracked the revenues recorded by media owners in the European nation, and found that figures fell by 12.5%, to €10.3 billion ($13.9bn; £9.3bn).

Within this, print - responsible for a 36.4% share of media budgets - experienced a contraction of 18.1% on an annual basis, falling to €3.75bn.

Television was off by 11%, meaning that ad sales through this channel stood at €3.09bn for the year, or a share of 30.1%.

Elsewhere, outdoor delivered a dip of 10.9% to €1.13bn, with print and online directories sliding by 2% to €1.08bn.

Radio's returns tumbled by 8.9% to €676m, with online display also shrinking by 6.5% to €482m, leaving cinema as the only medium to enjoy growth, up by 2.3% to €77m.

Corresponding data from France Pub showed that brand owners in the country slashed their total marketing expenditure by 8.6% to €29.8bn in the last 12 months.

According to its estimates, the resources directed to TV advertising diminished by 11.0% to €3.66bn, while print budgets plummeted by 17.2% to €3.55bn in the same period.

Outdoor was down by 11.3% to €1.29bn, while the internet – including search – experienced a decrease of 1.5% to €1.18bn.

Radio fell by 8.9% to €839m.

Cinema again posted the best performance among the main media channels, but still remained flat year-on-year, on €117m, according to France Pub.

More broadly, advertisers' outlay on direct marketing dwindled by 5.6% to €9.02bn, while promotions, including point-of-sale, dropped by 8.3% to €4.68bn.

Spending on public relations fell by 9.5% to €1.66bn, with events such as shows and fairs also seeing funding levels cut by 6.5% to €1.44bn.

Directories registered a decline of 2% to €1.25bn, as did sponsorship, by 7.8% to €768m, and corporate philanthropy, by 6.2% to €332m.

Data sourced from IREP; additional content by Warc staff