Telecinco knows where the Euros go as ad revs rise

B'caster predicts growth that surpases neighboring countries

MADRID — Ad revs at Spanish broadcaster Telecinco will grow more than 20% in the second quarter of the year, according to the web’s advertising CEO Giuseppe Tringali.

Tringali’s claim could look like an extraordinary case of cojones compared with growth at the top Euro broadcasters.

For instance, Italy’s Mediaset upped ad revs 9% last year, France’s TF1 hit 7%, while Germany’s ProSiebenSat 1 and the U.K.’s ITV made just 2%.

The most extraordinary thing about Tringali’s prediction, however, is that it’s probably accurate.

Spain’s advertising miracle fires off fundamentals.

Nominal GDP for 2005 runs around 6%, outpacing other Euro countries. In recoveries, advertising tends to outperform GDP growth: Spain’s overall ad market jacked up 10% in 2004, while TV advertising rose 15.5%.

Spanish TV rates depart from a relatively low base: The cost of reaching 1,000 viewers is about half that of the U.K.

And there are few other platforms that catch as many potential buyers. Internet access runs at 19% of households; around 41% of Spaniards read newspapers.

So TV nabs the full force of multinational companies locking into a relatively immature market.

Telecinco is also cashing in on telcos, which have doubled their ad investment with commercials for 3G telephony and ADSL. Banks are tubthumping relaxed mortgage rates.

And Telecinco is stealing auds from pubcaster TVE — a fact not unnoticed by advertisers.

The pair tied with a 22.6% market share April-May 2004; this year Telecinco has 23.2% against TVE’s 19.1%.

Formula 1 auto racing is just one example of Telecinco’s hit programming. With favorite son Fernando Alonso leading the championship, Formula 1 ad revs have revved up $12.4 million for Telecinco, Tringali says.

But Telecinco also offers advertisers a better quality bang for their buck.

It guarantees programming placements and, increasing advertisers’ impact, it’s introduced a premium primetime one-minute break.

Telcos, auto and financial advertising will continue to grow, he predicts.

For some quarters to come, it could be extraordinary business as usual at Telecinco.

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