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Spanish TV ad spend grows 2.5%

TV ad prices rose 30%

MADRID — Ad spend at Spain’s free-to-air nationwide TV broadcasters grew 2.5%, January to September, to E1.47 billion ($2.04 billion), according to research company Infoadex.

Despite Spain’s economic downturn, total ad revs in Spain — including TV, press, radio, billboards and Internet — increased 2.6%.

The TV market has powered Spain’s ad increase, capturing 47% of the country’s total ad investment.

A government-imposed advertising ban at pubcaster TVE from Jan. 1, which has freed up an estimated $973 million in TV ad revs, allowed Spanish broadcasters to raise prices around 30% this year.

“This has had a knock-on effect for other sectors,” one analyst said.

Through September, Mediaset-owned net Telecinco upped its ad revenues 41.3% to $798.3 million, boosted by the summer’s FIFA World Cup soccer matches.

Also, the broadcast of World Cup soccer games drove ad revs at channel Cuatro — currently being bought by Mediaset — up to $300.7 million, a 12.2% uptick.

Ad investment at Imagina/Televisa’s web LaSexta increased 44.7% to $271.1 million, helped by transmission of soccer Liga matches and Formula One car races.

Without sport events, boasting less aud and therefore less able to hike ad prices, DeAPlaneta’s Antena 3 grew 21.2% to $677.4 million.

Nationwide webs took 83.3% of Spain’s total TV ad investment for the period January-September, Infoadex said.

Regional pubcasters increased their ad cake share to 11.2% nabbing $276.2 million, while pay TV repped 2.6% of the total market, with a growing (but still modest) ad revenue of $63.5 million.

There no total visibility on the future for Spain’s ad market.

Much ad investment was brought forward to the first half of the year, taking advantage of a governmental cash for old vehicles scheme finished in June and before a rise in local value-added taxes on goods, which kicked in this July.

“By the end of the year, there’ll be moderate or negative growth,” the analyst said. “What’s certain is that the second half won’t see the ad investment levels of the first.”

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