Adspend rises ahead of Cup

The fixed-line telecommunications group spent R29.5-million on advertising related to the tournament in the first quarter of this year, which is equal to 38% of its total adspend over the period.

The advertising market in general is more buoyant than a year ago. Total adspend is up 13%, with an additional R680-million spent on advertising in this year's first quarter compared with the fourth quarter of last year.

Adspend was up 17% year-on-year in March, 12% in February and 11% in January compared to the same month the previous year. Adspend in March this year was R2.2-billion, 44% of which was allocated to TV, followed by 34% to print.

"It bodes well for advertisers and retailers," said Ken McArthur, the managing director of Nielsen Media.

Adspend in 2009 was down 1% on the previous year at gross rates, but at discounted terms it was probably about 25% lower, according to Nielsen Media.

Fifa, which spent a negligible amount on advertising in 2007, splashed out R11-million in 2008 and R95-million last year.

Figures from the World Cup hosted by Germany peaked up to the start and dropped sharply through the following 30 days. TV got most of that money, with magazines a distant second. Nielsen figures show that adspend increased in the US by 62%, in Korea and Japan by 20% and in Germany by 15% during the World Cups these nations hosted in 1994, 2002 and 2006, respectively.

Consumer goods companies remain the big spenders for the first quarter of this year. Shoprite spent R180-million on advertising (up from R140-million in the first quarter last year), followed by Unilever which spent less than the same period last year. SABMiller spent nearly R120-million versus just below R60-million a year ago.

Nielsen expects adspend for the year to be between 12% and 25% higher than last year, possibly reaching R25-billion.

Source: Sunday Times