Venezuela ad market declines
BY Joachim Bamrud
02.05.06 | Venezuela is the ad market that is declining most worldwide, according to ZenithOptimedia. It forecasts that Venezuela’s ad market will see an overall decline of 27.9 percent in the 2004-08 period. No other international market comes even close.
Venezuela’s ad markets is expected to reach $478 million this year. That’s a 17.0 percent decline from 2005 and a 38.6 percent fall from 2001. TV and newspapers, which account for most of the spending, will see declines, as will radio. Outdoor, cinema and magazine advertising will grow, albeit at low rates.
Last year, ad spending grew by 0.2 percent to $576 million. A new communications law prohibits international commercials being transmitted in Venezuela. At the same time, free-to-air TV, radio and cinema are not allowed to advertise alcohol or cigarettes.
"Free-to-air TV remains the leading medium, but it is losing share because of presidential intervention, which occurs at least once every day now," ZenithOptimedia says.
Advertisers are increasingly looking for new media alternatives such as buses, trucks and malls, as well as new types of adverts in newspapers and magazines, according to ZenithOptimedia.
Next year, the Venezuelan ad market will likely fall by 12.1 percent to $420 million, Zenith forecasts. All channels are expected to see declines, the agency predicts.
Originally posted in Latin Business Chronicle
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