Quarter 4 2012 - Nielsen · 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

Quarter 4 2012

INSIDE:

Global Advertising Trends

Trends by Media Type

& by Category

Sample of Full Report

Quarter 4 2012

© The Nielsen Company, 2013 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

3.2

0.7

3.7 4.5

2.9 2.2

3.8

6.2

4.8

2.1

0.4

3.0

4.1

Year todate

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

0

10000

20000

30000

40000

50000

60000


20112012

$557.4 billion

YEAR ON YEAR % CHANGE BY MONTH

Global Advertising Trends Year to date

ADVERTISING EXPENDITURE TREND

Million USD

Main Events

• Global consumer confidence declines one point from Q3 to 91

• European consumer confidence drops three points, from 74 to 71

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

• The civil war in Syria continued in Q4 with no sign of a resolution in the near future

Main Facts

• Growth for 2012 ends with increase of +3.2 percent for year

• Q3 increases seen in North America Automotive advertising fail to continue into Q4

• October 2012 sees lowest global advertising increase of the year so far

• Europe sees -4.2 percent decline in advertising for year 2012.

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

• Consumer Prices** + 4.0%

• Nielsen Consumer Confidence Index: 91** (-1 compared to Q3 2012)

*2012 vs. 2011 forecasts **Q4 2012 survey


7

Global ad spending stands firm to increase +3.2% for 2012 After growth in advertising rose in the third quarter by +4.3 percent, quarter four advertising spend growth receded to a more modest +2.5 percent, with spend for the quarter at USD 154 billion. The overall increase in advertising for 2012 was slightly better at +3.2 percent, with global advertising totalling USD 557 billion.

Increases in advertising budgets were witnessed in all regions, except Europe, in 2012. The Middle East & Africa seeing the biggest percentage increase in advertising for the year (+14.6%) as stability returned to the region especially the key market of Egypt (+20.4%). However, this region remains sensitive to further political

disturbances.

Asia Pacific underperformed as it saw its annual increase in ad spend fall from +11.5 percent in 2011 to +2.8 percent in 2012. The main cause of this was the +1.9 percent reported by China in 2012 and it remains to see if this country can return to the fast growth seen previously.

Europe continued to see deep cuts in advertising budgets with a -5.3 percent decrease for quarter four, resulting in a -4.2 percent decrease for the year. Even economic powerhouse Germany reported a second consecutive quarter of decline in advertising spend (-1.0%). These trends suggest that European countries will continue to face a challenge in 2013 to regain advertising dollars.

Quarter three increases seen in the North America region for Automotive ad spend failed to keep pace resulting

in a very minor increase of 0.9 percent for quarter four. This contributed to a relatively small 3.4 percent increase for Automotive ad spend globally for 2012.

Trends to Watch

Disagreement on the necessary financial path for the U.S. economy has had an impact and resulted in self-imposed government cuts. It remains to be seen what affect this will have on an advertising market which has benefited from the U.S. presidential election in the second half of 2012.

Europe’s struggles are likely to continue and it remains to be seen what impact, if any, the uncertainty caused by the Italian election results will have on the advertising market in this region. In the next edition of the Nielsen Global AdView Pulse, Nielsen will examine these impacts.

REGIONS -- YEAR ON YEAR % CHANGE

14.6

6.7

-4.2

2.8

4.6

3.2

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

7.5 8.7

5.8 25.7

-3.2 0.2

20.4 14.6

-3.5 7.6

21.2 6.7

-0.6 5.9

-1.6 -18.0

-7.8 3.4

-6.4 -14.5

-4.9 -24.8

-0.3 2.5

-1.4 -4.2

8.0 -8.3

-3.8 1.6

16.6 7.8

6.3 1.5

23.1 13.4

0.9 -4.0

2.8 4.8

2.2 4.6

3.2

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


9

MEDIA -- % CHANGE YEAR TO DATE Media Types

Advertising spend for 2012 rose 3.2 percent YOY as the trend saw in the first three quarters of the year continued into Q4. Television remains the most favored means on communicating with customers with a 62.8 percent share of spend.

Television advertising spend ended the year with an increase of 4.3%, bolstered by increases in spend from within North America in the second half of the year. Coupled with television’s high share of spend this underlines the importance placed on this medium by advertisers.

Press fared less well in 2012 with both Magazines (-1.6%) and Newspapers (-0.2%) reporting slight decreases in advertising spend. Magazines saw a decline in ad spend in multiple regions (Europe -7.7%, North America -2.5% & Middle East and Africa -2.4%) whereas Newspapers was a victim of the problems affecting Europe (-7.5%) showing increases in all other regions.

4.3% Television

6.1% -0.2%

-1.6%

Radio Newspapers

Magazines

7.7% Outdoor

5.8% 9.9% Cinema Internet


10

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

0.3 1.9

8.0

19.5

2.3 5.2

62.8

Television Radio Outdoor Newspapers

Media Types - continued

Display Internet advertising, though measured in a smaller subset of countries, saw positive growth in 2012 with an increase in advertising spend of 9.9 percent. It grew particularly well in the Latin America region with a 21.2 percent increase for the year. Perhaps an even better achievement was the 7.4 percent increase for 2012 Internet advertising seen in Europe even in the face of the current economic situation. Cinema also saw the same increase in Europe.

Internet and Outdoor were the only mediums to show positive growth YOY in all the regions where they were monitored.

-2.5

2.8 5.4 6.0 6.4

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

Newspapers Outdoor Radio Television

Magazines Internet Cinema

-8.3

21.2

2.8 2.1 6.6

9.9 7.1

10.3

-2.4

1.6

31.6

16.4 19.1

7.4 7.4

-7.7 -7.5

3.8 0.1

-4.2

10.3

2.0

4.2

0.6

12.9

6.0

3.2

Cinema Internet Magazines


11

Macro Sectors

Telecommunications (+7.0%) ended 2012 in pole position for increases in advertising spend. However, FMCG’s strong quarter four increase (+9.5%) meant the full year lead was only marginal. This coupled with its 25.1 percent share of spend meant FMCG advertising spend for 2012 grew in importance in driving forward advertising spend globally.

Automotive advertising spend slipped in quarter four to a decrease of -2.8 percent resulting in a slight growth of +3.4 percent for the year of 2012.

When comparing 2011 increases in advertising spend with 2012, two sectors show significant changes in trends. Clothing & Accessories, which was last year’s top performer with an increase of 17.5 percent, only saw an increase in 2012 of 2.8%. Similarly, Healthcare actually saw a decline of 0.7 percent in 2012 after reporting an increase of 11.2 percent in 2011.

.

Automotive Clothing & Access. Distribution Durables

Entertainment Financial

Telecom.

FMCG Healthcare

Industry & Serv. Media

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

7.8 3.5

5.2

5.0

11.8

5.3

25.1

9.8

11.2

7.4

5.7

SECTORS -- % CHANGE YEAR TO DATE

-2.1

-0.7

0.9

1.6

2.8

3.1

3.4

5.3

5.8

6.8

7.0

DURABLES

HEALTHCARE

FINANCIAL

INDUSTRY & SERVICES

CLOTHING & ACCESSORIES

ENTERTAINMENT

AUTOMOTIVE

DISTRIBUTION CHANNELS

MEDIA

FMCG

TELECOMMUNICATIONSTELECOMMUNICATIONS companies continue to increase ad spend by 7.0% 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 GENERAL MOTORS 5 FORD MOTOR 6 TOYOTA MOTOR 7 VOLKSWAGEN GROUP 8 AT&T 9 MCDONALD'S 10 NESTLE

CATEGORIES RANK AND % SHARE OF SPEND, YTD

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

0.6 1.1

1.4 2.2 2.3

2.5 2.7 2.9

3.5 3.6

4.9 5.2 5.3

5.7 5.9

6.2 7.4

7.8 7.8

8.9 9.8

11 HONDA MOTOR 12 VERIZON COMMUNICATIONS 13 NISSAN 14 CHRYSLER 15 RECKITT BENCKISER 16 TIME WARNER 17 SONY 18 SAMSUNG 19 JOHNSON & JOHNSON 20 MARS

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: Nielsen 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 4 2012

SNEAK PREVIEW

Get a taste of the regional and

country insights from the full

version of Nielsen Global AdView

Pulse


20

Latin America Region Overview Highlights

• Latin America returns to more positive 7.6% increase in advertising for Q4

• Slowdown in Brazil continues but Argentina shows significant increase of 29.5%

• Mexico shows first increase of 2012 (+1.6%)

After a cooling in Q3 (+4.7%), Latin America returned to a more positive 7.6 percent increase in Q4, pushing the 2012 YOY increase to 6.7 percent. Argentina continued to report a significant increase of 29.5 percent in advertising spend for Q4. In contrast, Brazil only grew 5.1% which was in line with the increase seen in Q3 (+4.8%) but lacking behind the performance of the first half of the year (+14.9% in Q1 and +7.5% in Q2). Mexico reported an increase of 1.6 percent for Q4 which saw a reverse on the declines reported in the first three quarters of the year, although this was not enough to change a decline of 3.5 percent for 2012 overall.

Significant Q4 advertising expenditure growth was seen in Telecommunications (+37.7%), whereas Automotive saw a very disappointing 10.4 percent decline for the quarter.

COUNTRIES -- % SHARE OF SPEND -- YTD

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000


20112012

MARKET -- ADVERTISING EXPENDITURE TREND

Million USD

$92.1 billion

15.5

62.0

22.5

Argentina

Brazil

Mexico

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


21

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

2009 2010 2011 2012 2013 2014

GDPCP

The Netherlands Country Overview

MACRO ECONOMIC TRENDS

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

POPULATION 16,530,000

GDP in BILLIONS 541 EUR

GDP PER CAPITA 32,728 EUR

INFLATION 1.0 percent

CURRENCY 1 Euro = 1.3928 USD

CONSUMER CONFIDENCE INSIGHTS

Source: Nielsen Consumer Confidence Index, Q4 2012

COUNTRY FACTS

THE NETHERLANDS

76

-7 from Q3


22

-0.6

9.8

2.3

-13.4

-1.0

5.2

-0.2

5.7

-1.5 -6.8

7.4 2.7

13.4 12.0

18.8

3.6

10.5

16.9

-2.0

7.9 2.9

2009 vs 2008 2010 vs 2009 2011 vs 2010

TV MG NP RD OD CI INT TOT TV MG NP RD OD CI INT TOT

The Netherlands Country Overview

Highlights

• The Netherlands economy declines slightly in Q4 after significant contraction in Q3.

• Ad market shows a -10.9% decline in Q4

After a dramatic contraction during the third quarter, the Dutch economy continued to show a decline in the fourth—recording a 0.2 percent decline against Q3 and a 0.9 percent decline year-on-year. As concerns over job security, retirement, and the housing market plagued consumers, it’s no surprise that consumer confidence dropped 7 points from the third quarter to 76 points—according to Nielsen’s consumer confidence index.

The Dutch ad market showed progressively larger cuts to budgets during the year, with the fourth quarter ending with a -10.9 percent decrease in spending year-on-year. For 2012 as a whole, ad spending contracted by -6.4 percent.

Of the macro sectors monitored in this report, only the Automotive sector showed a small boost in Q4 ad spending.

0

50

100

150

200

250

300

350

400


20112012

$3.1 billion

ADVERTISING EXPENDITURE TREND

METHODOLOGY • Media covered: Television, Newspapers, Magazines,

Radio, Outdoor, Cinema, Internet

• Figures: estimated net. Provided at rate card prices, but Nielsen Global AdView estimated weighting factors are applied

NOTES • Internet is excluded as a major modification in Internet

methodology took place mid-2011, making 2012 data incomparable

Advertising – Year-on-year % change by Media

TV MG NP RD OD CI INT TOT

Quarter 4 2011 Quarter 4 2012

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Contact

E-mail [email protected]

Nielsen Global AdView Nielsen Global AdView provides information on what advertisers are spending, where and how, in more than 80 countries. With a deep and complete knowledge of local market advertising trends, ad spend, creatives, and TV gross rating points (GRPs) can be compiled, linked and harmonized at brand and product level to enable quick strategic insight into competitive activity within a client’s own product sector. Media Group One of the major businesses of Nielsen, the Media Group is active in 40 markets offering television, radio and outdoor audience measurement, print readership, advertising information services and customized media research. The Media Group of Nielsen is the recognized market standard for media information in the largest advertising territories. Thanks to the local presence of our own branches in more than 20 of the world’s leading advertising markets (including North America, Europe, Asia Pacific and Africa) we can measure expenditure and creatives daily, providing an always open window on the world of media. Nielsen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, please visit www.nielsen.com.


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Quarter 4 2012 - Nielsen · 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

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