Quarter 3 2012 - Nielsen...Automotive and Industry & Services ad budgets •Asia Pacific also sees an improvement within its ad market during Q3, up +3.5% due to China’s ad market

Quarter 3 2012

INSIDE:

Global Advertising Trends

Trends by Media Type

& by Category

Sample of Full Report

Quarter 3 2012

© The Nielsen Company, 2012 This report, in full or in part, cannot be reproduced or transmitted in any form or by any means without written permission of Nielsen, Media Group, Global AdView. While every effort has been made in the preparation of this report to ensure accuracy of the content, Nielsen, Media Group, Global AdView, cannot accept any liability in respect of errors or omissions or for any losses or consequential losses arising from such errors or omissions. Readers will appreciate that the contents are only as up-to-date as their availability and compilation and printing schedules will allow, and are subject to change during the natural course of events.

WORLD TRENDS Year to date

Copyright © 2012 The Nielsen Company.

6

3.3

0.4

3.7 4.4

2.7 2.0

3.7

6.1

4.7

2.2

Year todate

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0

10000

20000

30000

40000

50000

60000


20112012

$405 billion

YEAR ON YEAR % CHANGE BY MONTH

Global Advertising Trends Year to date

ADVERTISING EXPENDITURE TREND

Million USD

Main Events

• Global consumer confidence increases one point from Q2 to 92

• North America and Europe report the only regional consumer confidence increases, though discretionary spending patterns remain stable globally from Q2

• U.S. holds presidential elections in the fourth quarter

• The civil war in Syria continues, with reverberations in surrounding countries

Main Facts

• Advertisers boost budgets in Q3 by 4.3%

• North America sees a significant influx of ad spend during Q3 (+10.2%) due to increased Automotive and Industry & Services ad budgets

• Asia Pacific also sees an improvement within its ad market during Q3, up +3.5% due to China’s ad market recovery

• Advertisers within Western Europe, on the other hand, slash budgets even further—with a -4.8% decrease from Q3 2011

MACRO ECONOMIC TRENDS • GDP (constant prices)* + 3.3%

• Consumer Prices** + 4.0%

• Nielsen Consumer Confidence Index: 92** (+1 compared to Q2 2012)

*2012 vs. 2011 forecasts **Q3 2012 survey


7

Global ad spending sees a boost in Q3, at +4.3% After slightly slower growth seen in the first half of 2012 (+2.7%), the global advertising market saw a healthy bounce during the third quarter, rising +4.3 percent against Q3 2011. With a +3.3 percent YOY increase when comparing the first three quarters of 2012, global advertising spend totaled USD 405 billion from January to September 2012, and USD 139 billion for the third quarter.

Growth was driven in part by an influx in advertising investments from North America, which saw an impressive +10.2 percent increase during the third quarter, and a +5.0 percent

increase year-to-date. Both Automotive and Industry & Services advertising (which includes political ads in the lead up to the U.S. presidential election) increased by double-digits YOY for both the year-to-date and the third quarter.

The Asia Pacific’s advertising market also showed signs of momentum, reporting a +2.7 percent increase for the year-to-date, and a +3.5 percent increase for Q3. Ad spending for the region was supported by the recovery of China’s advertising market, which showed positive trends in ad spending in Q3 (+3.1%) after two consecutive quarters of decline.

The embattled region of Western Europe, which reported a -2.7 percent decrease in YOY ad spending during the first half of 2012, saw deeper cuts in advertising during the third quarter

(-4.8%), as advertisers watched their budgets carefully due to continued economic instability within the region.

Trends to Watch

As surges in North American Automotive and Industry & Services advertising contributed notably to the positive ad spend results within the third quarter, Nielsen will watch to see if the positive advertising trends seen in the third quarter will be sustained in the fourth.

Industry & Services advertising in North America in particular will likely slow during the fourth quarter in comparison to the third, due to the conclusion of the U.S. presidential elections. In the next edition of the Nielsen Global AdView Pulse, Nielsen will examine these impacts on the fourth quarter advertising market.

REGIONS -- YEAR ON YEAR % CHANGE

18.9

6.4

-3.4

2.7

5.0

3.3

Global North America Asia Pacific Europe Latin America Middle East & Africa

* based mainly on published rate cards


8

GLOBAL North America Canada United States of America Asia Pacific Australia China Hong Kong Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand Europe Croatia France Germany Greece Ireland Italy The Netherlands Norway Portugal Spain Switzerland Turkey United Kingdom Latin America Argentina Brazil Mexico Middle East and Africa Egypt Kuwait Lebanon Pan-Arab Media Saudi Arabia South Africa United Arab Emirates

7.1 9.2 9.2

30.1 -3.8

2.0 37.2

18.9 -5.4

8.7 17.9

6.4 -1.0

6.2 -0.4

-16.2 -6.5

4.2 -4.5

-9.9 -6.8

-25.9 -0.3

0.5 -1.6

-3.4 7.4

-5.7 -3.5

1.7 16.1

8.3 3.2 2.6

25.0 12.5

0.3 -3.2

2.7 5.1

3.4 5.0

3.3

GLOBAL TREND – OVERVIEW BY REGION AND COUNTRY Year on Year % Change, YTD


9

MEDIA -- % CHANGE YEAR TO DATE Media Types

With ad spending up 3.3 percent YOY from January to September 2012 and a significant bump in ad spending during Q3 of 4.3 percent, advertisers by and large chose Television advertising as the favored media through which to communicate with consumers.

Television advertising rose 4.3 percent YOY for the January to September 2012 period (marking an increase from 3.1 percent for the first half of the year), due to a considerable Q3 increase in spending within North America (+13.6%). With a 61.8 percent share of spend of all media types measured within this report, Television’s increase further cemented its standing as the preferred medium of communication for advertisers.

In fact, when looking at all media types measured within this report, all media types saw increases in advertising spend year-to-date, with the sole exception of Magazines. Brands continued to invest less in this medium, with a -1.3 percent decrease in YOY spending from January to September 2012, and a deeper -1.8 percent decrease when looking at just the third quarter. Though the Asia Pacific sustained its investments (+5.3%), supported by key markets like China (+10.6%) and Japan (+3.8%), advertisers in both North America (-3.2%) and Europe (-6.8%) decreased budgets on Magazines.

4.3% Television

6.5% 0.8%

-1.3%

Radio Newspapers

Magazines

4.6% Outdoor

9.2% 7.7% Cinema Internet


10

MEDIA -- % SHARE OF SPEND -- YEAR TO DATE

0.3 2.7

7.9

19.7

2.6 5.2

61.8

Television Radio Outdoor Newspapers

Media Types - continued

Display Internet advertising, though measured in a smaller subset of countries, saw a +7.7 percent YOY increase in advertising from January to September 2012, due to budget increases from Financial, FMCG, and Telecommunications advertisers. Telecommunications companies, which saw the greatest percentage YOY increase in advertising spend for the year-to-date, increased their display Internet ad investments by over 25 percent.

Even in the embattled advertising market of Western Europe, display Internet advertising rose +9.0 percent YOY—the sole media type to show ad spend growth in the region.

-3.2

4.6 4.0 5.4 6.9

MEDIA BY REGION – YEAR-ON-YEAR % CHANGE, YEAR TO DATE

Newspapers Outdoor Radio Television

Magazines Internet Cinema

-15.9

29.1

3.5 2.5 6.2

10.6 6.0

19.4

-0.5

2.5

28.0 22.8

26.2

-1.1

9.0

-6.8 -6.8 -0.9

0.5

-3.0

45.5

-1.5

5.3 1.5

12.3 6.4

2.7

Cinema Internet Magazines


11

Macro Sectors

While Telecommunications advertising continued to lead the top of the percentage rankings in terms of YOY advertising spend growth for the period January to September 2012 (+6.6%), considerable gains were also seen in the macro sectors Media (+6.1%) and FMCG (+6.0%).

Within the macro sector Media, the subcategory Broadcasters saw a notable growth of 8.3 percent for the year-to-date. This may be in part due to an increase in in-house advertising (broadcasters advertising on their own channels) as they fill spots not sold to paying advertisers.

FMCG advertising, which saw a +9.6 percent increase during Q3 driven largely by increases in Food and Drink advertising, benefited from a 6.0 percent increase in advertising budgets for the year-to-date.

Automotive Clothing & Access. Distribution Durables

Entertainment Financial

Telecom.

FMCG Healthcare

Industry & Serv. Media

SECTORS -- % SHARE OF SPEND -- YEAR TO DATE

8.0 3.3

5.2

4.9

11.7

5.3

25.1

9.9

11.2

7.5

5.7

SECTORS -- % CHANGE YEAR TO DATE

-3.5

-0.4

0.6

2.4

3.9

4.2

4.4

6.0

6.0

6.1

6.6

DURABLES

HEALTHCARE

INDUSTRY & SERVICES

CLOTHING & ACCESSORIES

FINANCIAL

DISTRIBUTION CHANNELS

ENTERTAINMENT

FMCG

AUTOMOTIVE

MEDIA

TELECOMMUNICATIONSTELECOMMUNICATIONS companies continue to increase ad spend by 6.6% year-to-date

Though considerable increases are also seen in Media and FMCG advertising


12

TOP 20 GLOBAL SPENDERS, YTD

1 PROCTER & GAMBLE 2 UNILEVER 3 L’OREAL 4 FORD MOTOR 5 GENERAL MOTORS 6 TOYOTA MOTOR 7 VOLKSWAGEN GROUP 8 MCDONALD’S 9 AT&T 10 NESTLE

CATEGORIES RANK AND % SHARE OF SPEND, YTD

1 Healthcare 2 Cosmetics & Toiletries 3 Automotive 4 Food 5 Media & Publishing 6 Entertainment 7 Drink 8 Telecommunications 9 Financial 10 Distribution Channels 11 Institutions 12 Industry, Agriculture & Property 13 Clothing & Accessories 14 Transport & Tourism 15 Furnishings & Decoration 16 Leisure Products 17 Housekeeping Products 18 Business Services 19 Information Technology 20 Domestic Appliances 21 Energy 22 Tobacco 0.1

0.6 1.1

1.3 2.3 2.3

2.5 2.6

2.8 3.3

3.5 4.9

5.2 5.3

5.7 6.1

6.4 7.5

7.7 8.0

8.9 9.9

11 HONDA 12 VERIZON COMMUNICATIONS 13 NISSAN 14 RECKITT BENCKISER 15 JOHNSON & JOHNSON 16 TIME WARNER 17 CHRYSLER 18 THE COCA COLA COMPANY 19 PEPSICO 20 UNIVERSAL

METHODOLOGY NOTES


14

• Australia • Norway

• Canada • Philippines

• China* • Singapore

• Croatia** • South Africa

• Germany • South Korea

• Indonesia • Switzerland***

• Ireland (Republic of) • Taiwan

• Italy • Thailand

• Malaysia • Turkey

• The Netherlands • United Kingdom

• New Zealand

• United States of America

Methodology

The information included in this report has been compiled, harmonized and produced by Nielsen Media Group, Global AdView. The Nielsen Global AdView Pulse reports on advertising expenditure for Argentina, Australia, Brazil, Canada, China, Croatia, Egypt, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Italy, Japan, Kuwait, Lebanon, Malaysia, Mexico, The Netherlands, New Zealand, Norway, Pan-Arab Media, Philippines, Portugal, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the United States of America. Pan-Arab Media refers to the media outlets in the Middle East that have significant viewership, readership or listenership in two or more markets and are not localized to only one market in the region. They do not represent a duplication with the coverage of each country and gather a significant amount of the advertising in the region. * Provided by Nielsen CC Data ** AGB Nielsen in association with Ipsos *** In association with Media Focus

The Media Group within Nielsen, is the data source for the following countries:


15

The data sources for the other countries included in the report are: Argentina: IBOPE Brazil: IBOPE Egypt: PARC (Pan Arab

Research Centre) France: Yacast Greece: Media Services Hong Kong: admanGo Japan: Nihon Daily Tsushinsha Kuwait: PARC (Pan Arab

Research Centre) Lebanon: PARC (Pan Arab

Research Centre) Mexico: IBOPE Pan-Arab Media:

PARC (Pan Arab Research Centre)

Portugal: Mediamonitor Saudi Arabia:

PARC (Pan Arab Research Centre)

Spain: Arce Media UAE: PARC (Pan Arab

Research Centre) The source for the macro-economic indicators is IMF (International Monetary Fund) – World Economic Outlook October 2012 (website: www.imf.org). The Nielsen Global Survey (source for the Nielsen Global Survey of Consumer Confidence and Spending Intentions), was conducted between August 10 and September 7, 2012 and polled more than 29,000 consumers in 58 countries throughout Asia Pacific, Europe, Latin America,

Methodology

the Middle East, Africa and North America about their confidence levels and economic outlook. This Nielsen Consumer Confidence Index is developed based on consumers’ confidence in the job market, status of their personal finances and readiness to spend. The sample has quotas based on age and sex for each country based on their Internet users, is weighted to be representative of Internet consumers, and has a maximum margin of error of +0.6%. Figures are expressed in Million USD and are gross except for Australia, Ireland, and the UK which are estimated net at source, and France, Germany, Greece, Italy, the Netherlands, Spain, Taiwan, and Turkey—to which Nielsen Global AdView estimated weighting factors are applied. USA and Spanish figures are based on apples-to-apples comparisons to the previous year, both in terms of coverage and methodology, in order to give a more accurate representation of the trends. The source for the exchange rates is OANDA (website: www.oanda.com ) and the rate applied to all figures is the 2011 yearly average. In order to reflect the most accurate picture for media type trends and macro-sector trends, the methodology used for each may differ. Adjustments and estimates necessary to represent the media type trends accurately may not be suitable for the macro-sector trends. In some cases a direct comparison is therefore not possible.

MAP OF THE REPORT

• World Trend: this section includes all territories and relates to the following media types : Television, Newspapers, Magazines, Radio, Internet, Outdoor, and Cinema.

• Regions: this section includes spend on Television, Newspapers, Magazines, Radio, Internet, Outdoor, and Cinema. Each region includes the following countries: – North America: Canada, United

States of America. – Asia Pacific: Australia, China,

Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand.

– Europe: Croatia, France, Germany, Greece, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Switzerland, Turkey, United Kingdom.

– Latin America: Argentina, Brazil, Mexico.

– Middle East and Africa: Egypt, Kuwait, Lebanon, Pan-Arab Media, Saudi Arabia, South Africa, United Arab Emirates.

Note: Pan-Arab Media refers to the media titles in the Middle East that have significant viewership, readership or listenership in two or more markets and are not localized to only one market in the region. They do not represent a duplication with the coverage of each country and gather a significant amount of the advertising in the region.

http://www.imf.org

http://www.oanda.com/


16

• Country breakdown refers to all major media types available in the country (Television, Newspapers, Magazines, Radio, Outdoor, Cinema, Internet).

• Macro-sectors include the following Categories: – Automotive: Automotive – Industry & Services: Business

Services, Property, Institutions, Power & Water

– Clothing & Accessories: Clothing & Accessories

– FMCG: Cosmetics & Toiletries, Drinks, Food, Housekeeping Products, Tobacco

– Distribution Channels: Distribution Channels (including also: Mail Order, Multiple Product Retailers, On-line shopping & generic on-line services, Corporate/Image and sponsorship Distribution Channels)

– Durables: Domestic Appliances, Furnishings & Decoration, Information Technology

– Entertainment: Entertainment, Leisure products, Transport & Tourism

– Financial: Financial – Healthcare: Healthcare – Media: Media & Publishing – Telecommunications:

Telecommunications

Macro-sectors and Categories are harmonized in order to allow consistency of comparison between regions and countries. They may therefore differ to how the local sectors and categories are built.

• Top 20 Global Spenders: this

ranking has been compiled to show the top 20 spenders at corporate/holding company level. Using each of the businesses comprising these international corporations at a local level the cumulative total has been reported. The top 20 global spenders rank is based on the Nielsen countries included in this review plus Spain, Portugal and Hong Kong. For the remaining countries the advertiser detail is not available in a way that can be included in the global ranking.


17

TV Newsp. Magaz. Radio Outdoor Cinema Internet

North America

Canada

USA

Asia Pacific

Australia

China

Hong Kong

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

South Korea

Taiwan

Thailand

Europe

Croatia

France

Germany

Greece

Ireland

Italy

Netherlands

Norway

Portugal

Spain

Switzerland

Turkey

UK

MEDIA COVERAGE OVERVIEW

This table presents an overview of the media types covered in each territory.


18

TV Newsp. Magaz. Radio Outdoor Cinema Internet

Latin America

Argentina

Brazil

Mexico

Middle East and Africa

Egypt

Kuwait

Lebanon

Pan-Arab Media

Saudi Arabia

South Africa

UAE

MEDIA COVERAGE OVERVIEW

This table presents an overview of the media types covered in each territory.

Quarter 4 2011 Quarter 3 2012

SNEAK PREVIEW

Get a taste of the regional and

country insights from the full

version of Nielsen Global AdView

Pulse


20

North America Region Overview Highlights

• North American ad market sees a significant YOY boost during Q3, at 10.2%

• TV ad investments increase 13.6%

• Automotive and Industry & Services advertising (namely political ads) contribute to Q3 growth

The North American advertising market saw a significant boost during the third quarter, with a +10.2 percent increase in advertising budgets during Q3 2012 when comparing Q3 2011. Growth from both Canada (+14.6% YOY) and the U.S. (+9.9% YOY) fueled the increase, as Television, the dominant media type at a 64.3 percent share of spend, saw an impressive 13.6 percent increase in spending YOY during Q3.

Double-digit increases in Automotive advertising contributed to the positive growth, with a +21.9 percent increase in Automotive spending reported for the third quarter. Industry & Services advertising (which contains the subcategory Politics & Government advertising) saw a substantial growth of 21.6 percent, which resulted from a significant increase in political ads in the lead-up to the U.S. presidential election in November.

COUNTRIES -- % SHARE OF SPEND -- YTD

0

2000

4000

6000

8000

10000

12000

14000


20112012

MARKET -- ADVERTISING EXPENDITURE TREND

Million USD

$89.3 billion

7.0

93.0

Canada

USA

Full report includes: Regional & Country Trends by Month, Quarter, Media Type, Sector & Category Top Advertisers by Country and Globally


21

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2009 2010 2011 2012 2013 2014

GDPCP

Argentina Country Overview

MACRO ECONOMIC TRENDS

GDP (at constant prices) vs. Inflation (consumer prices) – year-on-year % change

POPULATION 41,028,000

GDP in BILLIONS 471 Argentine Pesos

GDP PER CAPITA 11,491 Argentine Pesos

INFLATION 9.9 percent

CURRENCY 1 Argentine Peso = 0.2428 USD

CONSUMER CONFIDENCE INSIGHTS

Source: Nielsen Consumer Confidence Index, Q3 2012

COUNTRY FACTS

ARGENTINA

75

-11 from Q2


22

0.6

39.1

26.7

-8.5

38.9 31.7

-3.4

41.1 37.6

6.9

27.7 32.8

-0.4

38.9 29.6

2009 vs 2008 2010 vs 2009 2011 vs 2010

TV MG NP RD TOT

Argentina Country Overview

Highlights

• Economists suggest that, despite the fact Argentina’s economy grew by approximately 0.4% in Q3, the country may fall back into recession in 2013

• Argentina’s ad market shows the largest percentage increase in ad spending YTD during Q3, at +20.3%

Though economists estimate that Argentina emerged from its recession in the third quarter, growing by 0.4 percent, some argue that the country may fall back into recession in 2013. According to the International Business Times, the country has not yet fully recovered from its economic problems and still suffers from hyperinflation.

Despite its economic issues, the Argentinian ad market showed its best performance of the year during the third quarter—with an expansion of 20.3 percent YOY. All macro sectors showed double-digit increases in advertising spending, with the lone exception of Durables (declining -8.2% in Q3).

0

200

400

600

800

1000

1200

1400


20112012

$9.9 billion

ADVERTISING EXPENDITURE TREND

METHODOLOGY • Media covered: Television, Newspapers, Magazines, Radio

• Figures: gross. Due to local coding methodology for Retail, it is not possible to attribute the local spend to the global Distribution Channels category. The trend for this sector is therefore not reported separately.

NOTES • Data source: IBOPE

• No change in coverage or methodology for this quarter

Advertising – Year-on-year % change by Media

TV MG NP RD TOT TV MG NP RD TOT

Quarter 4 2011 Quarter 3 2012

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Documents

Quarter 3 2012 - Nielsen...Automotive and Industry & Services ad budgets •Asia Pacific also sees an improvement within its ad market during Q3, up +3.5% due to China’s ad market