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Adspend slowdown not confined to SA
The following nominal adspend decreases were reported worldwide:
- UK: -6%
television -9%
outdoor -9%
magazines increased slightly
cinema +51%
- Germany: -6%
all media decreased (cinema not measured)
newspapers and radio had greatest drop, 10% each
- Italy: -4%
television, print and radio dropped
cinema had largest increase
outdoor showed small growth
- Spain: -3%
outdoor +30%
television, radio and magazines increased well
newspapers and cinema were flat
- US: -8% to -9%
national newspapers -29%
radio -12%
television -7%
outdoor +5%
Outdoor
In South Africa, Outdoor experienced real growth. Pete Piccione, managing director for Primedia Outdoor, attributed this to an improved supply of desirable sites and a strong move towards measurability and flexibility. He said the positive result was the attraction of brand new outdoor advertisers as well as continued support from existing clients.
Bazil Lauryssen, Managing Director for Clear Channel Independent, commented that they believe the Outdoor Industry has become a competitive broadcast medium in the communication strategies adopted by advertisers, while at the same time facilitating advertisers' requirements for short term tactical campaigns.
Radio
Radio adspend dropped in 2001, but Bolton suggests that rather than seeing the drop in 2001 as a negative trend, it is possible that the previous increase (in 2000) was more the extraordinary event being fueled by voter education and the National Lottery amongst others.
Cinema
Cinema's change from a positive growth to a negative position can be attributed largely to cigarettes and a considerable drop in alcoholic beverage activity in Cinema during 2001. Trevor Ormerod agreed that the decline in these two revenue sources had a serious impact on Cinemark's business. The challenge for 2002 is to replace lost business and look to new sources. Ormerod believes the investment in digital cinema projection will offer clients low production costs and quick turnaround.