The clients’ initial cautiousness disappears and TV ad autumn might be strong as indicated by the estimates of TV market development.
According to Nielsen Admosphere’s AdIntel monitoring, the volume of TV advertising got to its high this year in May and increased by nearly a third compared to last May. It was one tenth higher than monitored investments in TV ads in May 2019. In the first months of this year, TV ad investments were affected by TV advertisers’ cautiousness due to the pandemic situation, which was also seen in April. On the other hand, as mentioned above, this May was favourable to investments and could signal increased interest in the coming summer and autumn months.
“The first months of this year were significantly impacted by the pandemic and government measures that complicated sales of products and services of a number of advertisers. As a result, they had to redirect their communication to other goods or offerings, or postpone their investments to a later period after restrictions are relaxed. In spring, we also witnessed more frequent ad hoc campaign purchases than before. The structure of advertisers has also changed in part,“ says Jan Vlček, CEO of TV Nova, describing this year’s development.
In the first half of this year, the largest TV advertisers include retail chains, which have strengthened their positions, and some producers of fast-moving goods. The pandemic has brought a certain change in the structure of advertisers. Investments were increased by advertisers from the e-commerce and financial services sectors and for a number of them, it was their first step into TV.
The highest interest from advertisers is expected in autumn. It has traditionally been the key period for TV advertising and this year, it is likely to attract a portion of investments missed in the spring. “Moreover, a number of new clients appear in the market who have used other media so far that have no longer been sufficient. That is why we expect high levels of sold out inventory in the market, which will drive the advertising costs up,“ estimates Jan Vlček and adds that due to high demand for advertising, price increases can be expected next year. “The clients’ initial cautiousness slowly disappears and we think that with the expected strong autumn, we can also anticipate a year-on-year growth in TV investments,” said Vlček, estimating the overall development this year.
A strong May also raises expectations for summer months of this year. “We can see that an increased interest in TV advertising has been going on in June and we expect that summer will be no less successful. We notice a rather high portion of the TV market being sold out at the moment and we want to be ready to accommodate all market demand that other providers are no longer able to satisfy. For this reason, we have decided to enhance our programme in June and over the summer holidays in order to maximise our ad space and provide clients with exclusive ad breaks,” comments Nova’s head of sales on the forthcoming period. Unusually, Nova has launched a brand-new TV series “Co ste hasiči” and premiere episodes of the Kameňák TV series in summer, seeking to boost its summer programme.
Please note, that the significant year-on-year growth only applied to May. In the period from June to May 2021, the monitored increase in TV advertising is at 6%. In April, the volume was at a standstill (+0,3%), in May up 6%, in February down 7% and in January down 2% year-on-year.
The strongest entities by delivered GRPs for the first five months are Media Club (TV Prima, Óčko, Barrandov Group) with 51% (TG 15-54) followed by Nova Group (41%) and, falling behind, Atmedia (4%) and Česká televize (4%).