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Home / Business

Businesses slash TV advertising

John Drinnan
John Drinnan
Columnist·NZ Herald·
7 Aug, 2009 04:00 PM2 mins to read

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The amount of money spent on television advertising fell 13.3 per cent, or $39.4 million, in the first half of this year as businesses pared back spending.

Advertising agencies are reporting that all media are offering discounts to keep advertisers and fill ad inventory, but the lost revenue will hurt
TV companies.

Advertising strategists Martin Gillman and Derek Lindsay say the fall in the first half has continued into the third quarter ending on September 30, but was expected to bottom out.

Rick Friesen, chief executive of the Television Broadcasters' Council, insisted that it had already done that and would rise, albeit slowly.

Gillman estimated that early bookings had fallen and ad rates were being discounted by more than 50 per cent. One advertiser said he was aware of TVNZ advertising rates that had been discounted by 70 per cent. He said falls were similar to overseas markets and companies based in the US were notably reducing their spending.

The TBC - representing TVNZ, MediaWorks and Sky - announced yesterday that first-half TV ad sales fell $39.4 million to $257.1 million.

Gillman said that during the first half of 2009 ad spending had been boosted by the telecommunications sector. Car advertising had not fallen as severely as the industry had expected.

Derek Lindsay, the chairman of the media committee for the Communications Agencies Association said the industry was in no better position than any other sector of the economy.

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