Ad recovery underway as broadcasters bounce back

After an extremely tough 2009 global TV ad revenues will return to growth this year. However, the total will not equal the peak set in 2008 until at least 2012, according to TBIvision publisher Informa Telecoms & Media. Its projections suggest a 3.7% increase in global TV ad revenues this year, taking the total to US$88.1 billion.

Major European broadcasters including ITV, ProSieben, Telecinco and TF1 have all reported upticks in advertising revenues in 2010 and the outlook for the year is broadly positive.

“With muted improvements in 2010 and 2011, the ad market is looking forward to 2012 – the year of the London Olympics, which is in an ad-friendly time zone for most of the world’s top markets, and the US Presidential elections,” said Informa principal analyst Simon Murray.

He added: “Net TV advertising expenditure will total US$126 billion in 2012. Growth thereafter will be slower, though the soccer World Cup finals in Brazil will boost the 2014 figures.”

By region, Informa analysts note that Eastern Europe was one of the hardest hit last year with ad revenues down 18.9%. Western Europe, meanwhile, was down 10.9%. Both will return to growth this year.

Several countries that endured very tough 2009s will bounce back this year including Russia and Spain.

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