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25.10.2010 Television advertising rates to rise

Television advertising rates are likely to increase in most major markets this year, although the climate remains particularly challenging for US broadcasters. World Advertisng Research Center (WARC) recently updated its Global Media Inflation Benchmarks Survey, covering nations including Australia, China, France, Germany, India and the UK.

In the US, it was estimated the cost of a 30-second television spot will decline 3.5% in 2010, the only American mainstream media channel to experience an overall decrease. Elsewhere, the Survey predicted full-page colour newspaper ads, 30-second radio spots and standard outdoor billboards would register expansions topping 1%, outpacing internet banners.

China's will post considerably greater increases, as TV climbs 31.5% in 2010, helped by surging competition and tighter regulations concerning the frequency and length of commercial breaks. Radio and outdoor could also deliver jumps surpassing 17%, and press should generate single-digit gains, but cinema may stay flat year-on-year. Online is due to enjoy a 27.5% uptick, assisted by rising penetration and digital literacy, alongside a sharpening desire among brand owners to reach the country's 420m web population.

In India, the net and outdoor head the charts in 2010 and 2011, although all main media are anticipated to improve in the assessment period. In Western Europe, television was similarly pegged to witness sustained increases across France, Germany, Italy, Spain and the UK. Bertelsmann, the European media group, stated that its RTL TV unit recorded "powerful growth" in the first half of 2010, boosting optimism regarding H2. France and Germany were the only two countries where the web could experience deflation in 2010 before charges rise again in 2011, when print will continue to struggle in Italy and the UK.

B.L. 25.10.2010