Global Advertising Trends and Statistics 2012

1. Quarter 2 2012
INSIDE:
Global
Advertising Trends
Trends by Media Type
& by Category
Sample of Full Report

3. Quarter 2 2012

4. © The Nielsen Company, 2012
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5. WORLD TRENDS
Year to date

6. Global Advertising Trends
Year to date
Main Events ADVERTISING EXPENDITURE TREND
• Global online consumer confidence Million USD
decreases three index points in Q2 2011
60000
2012 to 91 2012
• Discretionary spending and saving 50000
decreased globally across all
sectors, with more than two-thirds 40000
of consumers changing spending
30000
habits to save on expenses $266
• The Euro zone crisis continues to 20000 billion
worsen, combined with a downward
10000
GDP revision from the economic
powerhouse China
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Main Facts
• Advertisers continue to spend
cautiously during the first half of
YEAR ON YEAR % CHANGE BY MONTH
2012, though budgets are on the
upswing by +2.7% 4.6
4.0
• North America continues to trend 3.1
2.7
positively, increasing ad budgets by 2.4
2.4% 1.7
• Europe, on the other hand, makes 0.6
deeper cuts in advertising
budgets—ending the first half of
Year to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 with a -2.7% decrease in date
spending vs. 1H 2011
MACRO ECONOMIC TRENDS
• GDP (constant prices)* + 3.5%
• Consumer Prices** + 4.0%
• Nielsen Consumer Confidence Index: 91**
(-3 compared to Q1 2012)
*2012 vs. 2011 forecasts
**Q2 2012 survey
Copyright © 2012 The Nielsen Company.
6

7. Global ad spend consumer confidence decreased
three index points in the second
Middle East’s growth is in part due to
the low base of comparison against
increases 2.7% in quarter to 91 amid worrying economic the first half of 2011—when the Arab
signals from Europe, China, and a Spring rocked both the economies
1H 2012 stalled U.S. job market. and advertising markets of many
countries in the region.
Global ad spend totaled USD 266 Though advertising budget cuts
billion in the first half of 2012, showing continue to run rampant in Europe Trends to Watch
a 2.7 percent increase over the same (down -2.7% in 1H 2012 vs. 1H 2011),
Though second quarter advertising
period in 2011.* Increases were advertising expenditures in North
growth was more tempered than the
relatively contained when compared America showed positive trends in the
first, the month of June showed the
with the difficult first half of 2011, rife second quarter, ending the first half of
highest percentage growth trend for
with natural disasters, political 2012 with a +2.4 percent increase
Q2 (+3.1%).
uprisings, and the ripple effects of over a year earlier. The increase is in
part attributable to a 12.4 percent Nielsen will watch to see if these
financial crises in both Europe and the
increase in Industry & Services upward trends, combined with the
United States.
advertising during Q2, which includes London 2012 Olympics and the run up
Clearly both advertisers and government and political advertising to the U.S. president election, are
consumers are proceeding cautiously in advance of the U.S. presidential sustained in the third quarter—
in an uncertain economic election in November. potentially providing positive impacts
environment, where even economic to the global advertising market.
powerhouses like China are facing Emerging markets of Latin America
downward GDP revisions and (up 6.9%) and the Middle East &
unprecedented advertising budget Africa (up 21.1%) led growth during
cuts. According to Nielsen, global the first half of 2012, though the
* based mainly on published rate cards
REGIONS -- YEAR ON YEAR % CHANGE
2.7
2.4
2.3
-2.7
6.9
21.1
Global North America Asia Pacific Europe Latin America Middle East & Africa
Copyright © 2012 The Nielsen Company.
7

8. GLOBAL TREND – OVERVIEW BY REGION AND COUNTRY
Year on Year % Change, YTD
GLOBAL 2.7
North America 2.4
Canada -1.3
United States of America 2.7
Asia Pacific 2.3
Australia -4.7
China -1.3
Hong Kong 13.3
Indonesia 25.8
Japan 4.7
Malaysia 1.7
New Zealand 10.9
Philippines 11.0
Singapore 3.5
South Korea -3.3
Taiwan -2.1
Thailand 5.9
Europe -2.7
Croatia -2.4
France 1.2
Germany 0.5
Greece -26.1
Ireland -6.6
Italy -9.4
The Netherlands -4.3
Norway 3.4
Portugal -4.8
Spain -14.9
Switzerland 1.3
Turkey 13.1
United Kingdom 0.2
Latin America 6.9
Argentina 16.4
Brazil 10.1
Mexico -6.0
Middle East and Africa 21.1
Egypt 64.9
Kuwait 0.5
Lebanon -3.9
Pan-Arab Media 34.4
Saudi Arabia 12.0
South Africa 9.6
United Arab Emirates 5.8
Copyright © 2012 The Nielsen Company.
8

9. Media Types MEDIA -- % CHANGE YEAR TO DATE
Though advertising budgets are on
the rise (up 2.7% in the first half of
2012), advertisers appear to be
choosing their mode of
communication carefully in order to
re-engage with consumers. When
compared with the trends seen in the
3.1% 6.6% 4.7% 1.6%
Television Radio Outdoor Newspapers
first quarter, most of the media types
showed more contained increases
during the first half of 2012—with the
exception of Television.
-1.3% 7.2% 5.9%
Television advertising, which
increased 2.8 percent year-on-year in
the first quarter, saw a 3.1 percent Magazines Internet Cinema
increase in advertising expenditures
for the first half of 2012. Television
increased by 4.0 percent in North
America, driven by a 4.2 percent
increase in ad spend from the U.S.
The Middle East & Africa saw a
significant increase in Television ad
spend of 30.1 percent during the first
half of 2012, as Egypt’s advertising
market rebounded from last year’s
Arab Spring.
Both Newspapers and Magazines, on
the other hand, saw budget cuts
during the second quarter, though
Newspapers still trended positively for
the first half of 2012 (+1.6%).
Every single market monitored in
Europe, with the exceptions of
Norway and Turkey, recorded a
decrease in Newspaper advertising
spend.
Copyright © 2012 The Nielsen Company.
9

10. Media Types - continued MEDIA -- % SHARE OF SPEND -- YEAR TO DATE
Though representing a smaller share
0.3 2.6
of spend at 5.2 percent, Radio
continued to see increases in every
region across the globe, with a 4.3
percent increase in North America 8.0
and a slight 0.8 percent increase in
Western Europe. The emerging
markets of Latin America (+12.7%)
and the Middle East & Africa
19.9
(+24.8%) saw more significant
increases for this medium.
61.4
Online ad spend (specifically display
advertising) contributed to the growth
5.2 2.6
momentum around the globe, with a
+7.2 percent increase recorded
globally. Global growth was slightly
tempered, however, due to a
decrease in Internet ad spending in
China—an effect of overall advertising
budget cuts in that market. Television Radio Outdoor Newspapers
Magazines Internet Cinema
MEDIA BY REGION – YEAR-ON-YEAR % CHANGE, YEAR TO DATE
11.2
4.3 4.0 0.4 0.8
0.8 2.8
-2.1 -2.2 40.2
-3.9 -5.2
-6.9
16.7
38.8 6.5 6.3
2.9 1.4
20.6 30.3 30.1
24.8
12.7 0.0
5.0 5.3 6.8 6.2
4.7
0.2
-21.1
-19.1
Cinema Internet Magazines
Newspapers Outdoor Radio Television
Copyright © 2012 The Nielsen Company.
10

11. Macro Sectors SECTORS -- % SHARE OF SPEND -- YEAR TO DATE
Though many sectors are spending
cautiously within an uncertain
economic environment, 5.6 8.2
Telecommunications companies 3.3
continued investing significantly more 7.6 5.2
on advertising than they did last year.
Increasing spending globally by +7.9 4.9
percent, the Telecommunications 11.0
sector saw the most considerable
increases in emerging markets like 11.9
10.1
Latin America (up 32.5%) and the
Middle East & Africa (+28.3%).
5.4
After more cautious spending during
the first quarter, the Automotive 24.6
sector also boosted spending by 6.3
percent during the first half of 2012
compared with the same period last
year. Even in the embattled region of Automotive Clothing & Access. Distribution Durables
Western Europe, advertising Entertainment Financial FMCG Healthcare
spending increased by +1.4 percent Industry & Serv. Media Telecom.
when comparing 1H 2012 to 1H 2011.
SECTORS -- % CHANGE YEAR TO DATE
TELECOMMUNICATIONS TELECOMMUNICATIONS 7.9
increases ad spend by 7.9% in
AUTOMOTIVE 6.3
1H 2012
Sector sees the most considerable ENTERTAINMENT 5.0
increases in the emerging markets
MEDIA 4.9
of Latin America and the Middle
East & Africa DISTRIBUTION CHANNELS 4.9
FINANCIAL 4.5
FMCG 4.3
CLOTHING & ACCESSORIES 2.8
HEALTHCARE -1.2
INDUSTRY & SERVICES -1.4
DURABLES -4.4
Copyright © 2012 The Nielsen Company.
11

12. CATEGORIES RANK AND % SHARE OF SPEND, YTD
1 Healthcare 10.1
2 Cosmetics & Toiletries 8.8
3 Automotive 8.2
4 Food 7.7
5 Media & Publishing 7.6
6 Entertainment 6.5
7 Drink 5.8
8 Telecommunications 5.6
9 Financial 5.4
10 Distribution Channels 5.2
11 Institutions 4.7
12 Industry, Agriculture & Property 3.4
13 Clothing & Accessories 3.3
14 Transport & Tourism 2.9
15 Furnishings & Decoration 2.6
16 Leisure Products 2.6
17 Business Services 2.3
18 Housekeeping Products 2.2
19 Information Technology 1.2
20 Domestic Appliances 1.1
21 Energy 0.6
22 Tobacco 0.1
TOP 20 GLOBAL SPENDERS, YTD
1 PROCTER & GAMBLE 11 HONDA
2 UNILEVER 12 VERIZON COMMUNICATIONS
3 L’OREAL 13 KRAFT FOODS
4 FORD MOTOR 14 JOHNSON & JOHNSON
5 TOYOTA MOTOR 15 TIME WARNER
6 GENERAL MOTORS 16 NISSAN
7 VOLKSWAGEN GROUP 17 RECKITT BENCKISER
8 AT&T 18 CHRYSLER
9 MCDONALD’S 19 THE COCA COLA COMPANY
10 NESTLE 20 UNIVERSAL
Copyright © 2012 The Nielsen Company.
12

13. METHODOLOGY
NOTES

14. Methodology
The information included in this report The Media Group within Nielsen, is
has been compiled, harmonized and the data source for the following
produced by Nielsen Media Group, countries:
Global AdView.
• Australia • Norway
The Nielsen Global AdView Pulse • Canada • Philippines
reports on advertising expenditure for
• China* • Singapore
Argentina, Australia, Brazil, Canada,
China, Croatia, Egypt, France, • Croatia** • South Africa
Germany, Greece, Hong Kong,
• Germany • South Korea
Indonesia, Ireland, Italy, Japan,
Kuwait, Lebanon, Malaysia, Mexico, • Indonesia • Switzerland***
The Netherlands, New Zealand,
• Ireland (Republic of) • Taiwan
Norway, Pan-Arab Media, Philippines,
Portugal, Saudi Arabia, Singapore, • Italy • Thailand
South Africa, South Korea, Spain,
• Malaysia • Turkey
Switzerland, Taiwan, Thailand,
Turkey, the United Arab Emirates, the • The Netherlands • United Kingdom
United Kingdom, and the United
• New Zealand • United States of America
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
Copyright © 2012 The Nielsen Company.
14

15. Methodology
The data sources for the other about their confidence levels and MAP OF THE REPORT
countries included in the report are: economic outlook. The Nielsen • World Trend: this section includes
Argentina: IBOPE Consumer Confidence Index is all territories and relates to the
Brazil: IBOPE developed based on consumers’ following media types : Television,
confidence in the job market, status of Newspapers, Magazines, Radio,
Egypt: PARC (Pan Arab Internet, Outdoor, and Cinema.
Research Centre) their personal finances and readiness
• Regions: this section includes
France: Yacast to spend. The sample has quotas
spend on Television, Newspapers,
based on age and sex for each Magazines, Radio, Internet,
Greece: Media Services
country based on their Internet users, Outdoor, and Cinema. Each region
Hong Kong: admanGo
is weighted to be representative of includes the following countries:
Japan: Nihon Daily Tsushinsha – North America: Canada, United
Internet consumers, and has a
Kuwait: PARC (Pan Arab maximum margin of error of +0.6%. States of America.
Research Centre) – Asia Pacific: Australia, China,
Lebanon: PARC (Pan Arab Hong Kong, Indonesia, Japan,
Figures are expressed in Million USD Malaysia, New Zealand,
Research Centre)
and are gross except for Australia, Philippines, Singapore, South
Mexico: IBOPE Ireland, and the UK which are Korea, Taiwan, Thailand.
Pan-Arab Media: estimated net at source, and France, – Europe: Croatia, France,
PARC (Pan Arab Germany, Greece, Italy, the Germany, Greece, Ireland, Italy,
Research Centre) Netherlands, Spain, Taiwan, and The Netherlands, Norway,
Portugal: Mediamonitor Portugal, Spain, Switzerland,
Turkey—to which Nielsen Global Turkey, United Kingdom.
Saudi Arabia: AdView estimated weighting factors
– Latin America: Argentina, Brazil,
PARC (Pan Arab are applied. USA and Spanish figures Mexico.
Research Centre) are based on apples-to-apples – Middle East and Africa: Egypt,
Spain: Arce Media comparisons to the previous year, Kuwait, Lebanon, Pan-Arab
UAE: PARC (Pan Arab both in terms of coverage and Media, Saudi Arabia, South
Research Centre) methodology, in order to give a more Africa, United Arab Emirates.
accurate representation of the trends.
Note: Pan-Arab Media refers to the media
The source for the macro-economic The source for the exchange rates is
titles in the Middle East that have significant
indicators is IMF (International OANDA (website: www.oanda.com ) viewership, readership or listenership in two or
Monetary Fund) – World Economic and the rate applied to all figures is more markets and are not localized to only one
market in the region. They do not represent a
Outlook April 2012 (website: the 2011 yearly average.
duplication with the coverage of each country
www.imf.org). and gather a significant amount of the
advertising in the region.
In order to reflect the most accurate
The Nielsen Global Online Survey picture for media type trends and
(source for the Nielsen Consumer macro-sector trends, the methodology
Confidence Index), was conducted used for each may differ. Adjustments
between May 4 and May 21 2012 and and estimates necessary to represent
polled more than 28,000 consumers in the media type trends accurately may
56 countries throughout Asia Pacific, not be suitable for the macro-sector
Europe, Latin America, the Middle trends. In some cases a direct
East, Africa and North America comparison is therefore not possible.
Copyright © 2012 The Nielsen Company.
15

16. • Country breakdown refers to all Macro-sectors and Categories are
major media types available in the harmonized in order to allow
country (Television, Newspapers, consistency of comparison between
Magazines, Radio, Outdoor, regions and countries. They may
Cinema, Internet). therefore differ to how the local
• Macro-sectors include the sectors and categories are built.
following Categories:
– Automotive: Automotive • Top 20 Global Spenders: this
– Industry & Services: Business ranking has been compiled to show
Services, Property, Institutions, the top 20 spenders at
Power & Water corporate/holding company level.
Using each of the businesses
– Clothing & Accessories:
comprising these international
Clothing & Accessories
corporations at a local level the
– FMCG: Cosmetics & Toiletries, cumulative total has been reported.
Drinks, Food, Housekeeping The top 20 global spenders rank is
Products, Tobacco based on the Nielsen countries
– Distribution Channels: included in this review plus Spain,
Distribution Channels (including Portugal and Hong Kong. For the
also: Mail Order, Multiple Product remaining countries the advertiser
Retailers, On-line shopping & detail is not available in a way that
generic on-line services, can be included in the global
Corporate/Image and sponsorship ranking.
Distribution Channels)
– Durables: Domestic Appliances,
Furnishings & Decoration,
Information Technology
– Entertainment: Entertainment,
Leisure products, Transport &
Tourism
– Financial: Financial
– Healthcare: Healthcare
– Media: Media & Publishing
– Telecommunications:
Telecommunications
Copyright © 2012 The Nielsen Company.
16

17. Quarter 2 4 2011
Quarter 2012
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PREVIEW
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country insights
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18. Middle East & Africa
Region Overview
Highlights MARKET -- ADVERTISING EXPENDITURE TREND
• Ad market posts a 21.1% increase
during the first half of 2012—mainly Million USD
2011
due to a low base of comparison 3000 2012
with 1H 2011
2500
• Growth is due to rebound of Egypt
ad market and growth of Pan-Arab
2000
Media
• Instability still reverberates within 1500
the region, as Syria’s civil war
1000
$8.7
enters its second year
billion
500
After a particularly difficult political
and economic period during the first 0
half of 2011, the Middle East & Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
African ad market during the first half
of 2012 shined in comparison—
posting a 21.1 percent increase in
COUNTRIES -- % SHARE OF SPEND -- YTD
spending compared with 1H 2011.
Main drivers of the growth were the
rebounds in the markets of Egypt, up
5.9
64.9 percent, and Pan-Arab Media, up 8.3
34.4 percent during the first half of 5.1
Egypt
2012. 2.2
Kuwait
Instability still reverberates in the
Lebanon
region, however, as Syria's civil war 24.7
Pan Arab
has now continued into its second Media
year. Impacts of the instability are Saudi
Arabia
immediately reflective in neighboring
South
Lebanon's advertising market, with Africa
8.3 45.6
budget cuts of -3.9 percent seen UAE
during the first half of 2012. According
to the Pan Arab Research Centre,
advertisers are increasingly looking to
the multi-market Pan Arab Media for
their advertising—seen as a more
stable investment than the single
markets.
Full report
includes:
Regional & Country Trends
by Month, Quarter,
Media Type, Sector & Category
Copyright © 2012 The Nielsen Company.
Top Advertisers by Country and Globally
18

19. South Korea
Country Overview
COUNTRY FACTS CONSUMER CONFIDENCE INSIGHTS
POPULATION
49,136,000
GDP in BILLIONS
SOUTH KOREA
50
1,119,965 South Korean Won
GDP PER CAPITA
22,793,334 South Korean Won
INFLATION
3.4 percent
CURRENCY
1 South Korean Won = 0.0009
+1 from Q1
USD
Source: Nielsen Consumer Confidence Index, Q2 2012
MACRO ECONOMIC TRENDS
GDP (at constant prices) vs. Inflation (consumer prices) – year-on-year % change
7.0
GDP
6.0 CP
5.0
4.0
3.0
2.0
1.0
0.0
2009 2010 2011 2012 2013 2014
Copyright © 2012 The Nielsen Company.
19

20. South Korea
Country Overview
ADVERTISING EXPENDITURE TREND
Highlights
• South Korean economy impacted 2011
600
by Europe’s economic woes—Q2
expands a mere 0.4% year-on-year
2012
500
• Ad market mirrors economic
troubles, posting a -3.3% decline in 400
the first half year
• On an optimistic note, a 300
quarter-on-quarter increase of 15%
$2.5
was seen between Q2 2012 and Q1 200 billion
2012
100
South Korea’s economy expanded
0.4 percent year-on-year during the 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
second quarter of 2012, adversely
impacted by Europe’s economic
woes. According to Reuters, analysts
believe that an additional interest rate
cut will be required to spur growth, METHODOLOGY
though they neglected to forecast
• Media covered: Television, Newspapers, Magazines, Radio
when South Korea’s economy would
begin to recover. • Figures: gross
The advertising market mirrored the • Cost estimates are calculated at rate card
troubles in the economy, posting a
-3.3 percent decline in spending NOTES
during the first half of 2012. On a • No change in coverage or methodology for this quarter
more optimistic note, a
quarter-on-quarter increase of 15
percent was seen between Q2 2012
and Q1 2012.
Advertising – Year-on-year % change by Media
TV MG NP RD TOT TV MG NP RD TOT TV MG NP RD TOT
21.5
16.0 14.6
10.2 9.3
5.0 5.2
0.8
-1.1
-3.5 -3.4
-6.5
-8.8
-11.4
-22.4
2009 vs 2008 2010 vs 2009 2011 vs 2010
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