MADRID: Adspend in Spain during 2013 is expected to fall at twice the rate forecast just two months ago, signalling continued deterioration in the nation's advertising market, a new report has suggested.
Zenith, the consultancy, analysed forecasts from sales and marketing directors at Spanish media groups. Its latest predictions suggest that all-media adspend will decline by 7% this year, compared with its previous forecast of -3.6%.
Based on that rate of decline, actual spending would reach around €4bn for the year, half the level achieved in 2007 before the global financial crisis struck.
The worst affected media are paid-for newspapers and television. The former channel is forecast to experience a -10.2% drop, while the latter is expected to suffer a -9% fall. In November 2012, these media were forecast declines of -7.9% and -4.5% respectively.
Zenith does not foresee the advertising sector returning to growth until April 2014.
"Although a fall of 7% is bad news for the sector, it can be seen as bringing a certain relief to a very negative trend," the report added.
This remark has to be seen in the context of recent figures from consultancies Arce Media and Media Hotline which estimated that national adspend fell -18% during 2012, before dropping by a further -10% in 2013.
The latest Warc Consensus Ad forecast, based on a weighted average of adspend predictions from ad agencies, media monitoring companies, analysts, Warc's own team and industry bodies, estimated that adspend in Spain dropped -13% in 2012 and should fall -2.8% this year.
Data sourced from Reuters/PR Marketing; additional content by Warc staff