The media perspective: Internet as big as out-of-home
Media Focus has just integrated an additional 400 million search ads into the measurement universe, retroactive to 2014. However, anyone who thought that better digital coverage would also make the market grow more noticeably is sorely mistaken. Just 3.7 million gross advertising francs, or a minimal 0.069 percent, were recorded as a plus for 2016. Growth is a different story. However, it is clear that advertising on the web already accounts for 12 percent of the advertising pie. On average, that is. For individual sectors such as household appliances or DIY stores, in the financial market, for facilities or tourism offers and of course in the fashion market, a digital advertising share of well over 20 percent is now the norm.
Advertising print distribution 2016
In the category perspective, electronic media landed at 2,600 million Swiss francs (+2.8 percent) and outdoor advertising at 658 million Swiss francs (+8.2 percent). Since the overall market is stagnating, it quickly becomes apparent that print media have continued to decline. Only 4 out of 20 industries have increased their print budgets (including Initiatives & Campaigns, Retail and Personal Needs). As of December, print media show a total of 2,100 million Swiss francs (-5.3 percent).
Seasonal development of all advertising campaigns in 2016
The market perspective: diametrical picture of two groups
A look at the annual data immediately reveals: In terms of absolute growth, the best performers are the "leisure/tourism" sectors with a CHF 16 million increase (including tour operators, casinos, car rentals, erotic stores), "food" with a CHF 14 million increase (including Knorr, Twix, Giotto, Zweifel, Cailler, Barilla, Stimorol, Emmi cream cheese) and the retail trade with a CHF 8.8 million increase (including Coop, Migros, Otto's, Tchibo, Volg). In addition, some sub-segments such as, among others, the film market (+7 million Swiss francs), federal voting (+19.3 million Swiss francs), book publishing (+3.6 million Swiss francs), health and sports (+4.7 million Swiss francs)
The sectors of finance, events, cosmetics & body care and, in total, the segments of construction & industry, furniture and home textiles recorded sharp declines in advertising activity of more than CHF 10 million gross each.
It becomes even more interesting when the percentage development of the advertising activity of the individual sectors is set in relation to the percentage average of the development of the advertising activity of all sectors. If we set this "relative advertising growth speed" of an industry to the advertising market development and look at this over 24 months and for the last 12 months, trend changes and trend reinforcements are visualized. If an industry grew faster than the market on average in percentage terms in 2016 and weaker than the market in percentage terms when 2015 and 2016 are combined, then that industry is categorized as a "catch-up" industry. This is helpful because it automatically puts the industry development in relation to the overall market development.
The automotive, fashion, cleaning, telecommunications, cosmetics & personal care, and events sectors continued their advertising share losses of the last two years (view on y-axis = left-hand side declining), and are also worse off in 2016 in relation to their advertising volume development (view on x-axis = lower area again more negative).
x-axis: Relative development over the last 12 months
y:Axis: Relative development over the last 24 months
The Finance and Pharmaceuticals sectors have recorded relatively good gains in advertising budgets over 2 years (position to the right of the y-axis), but have shrunk more sharply by between 2 and 4 percent at the current year-end (position below the x-axis) compared with the market average in percentage terms. They are therefore considered to be "fallers".
Currently, only the Digital & Household sector has managed to record relative growth above the market average compared with two years ago ("catch-up"). In addition, the above-average positive growth rates of the energy, leisure & tourism, retail, beverages and transport sectors are continuing.
It is noticeable that the food sector was able to increase its relative growth. The fashion market is struggling and its relative development is deteriorating. The growth rates of the service, telecommunications and construction & housing sectors also lost considerable ground. Although the vehicles sector was one of the losers, it was able to catch up minimally in relation to the development of the advertising market.
Overall, two major industry groups are diametrically opposed in their ongoing development: The winners to the losers. Here, both groups register prominent members with regard to their substantial advertising volumes (size of the balls shown). Vehicles and cosmetics (losers) look up to food and tourism. The position in the "winners" cluster shows the advertising follow-up of successful "business cases" (mass market, growth market).
In the advertising market as a whole, the "catchers up" and "laggards" remain in a clear minority. This shows that the advertising year 2016, compared to the development over 2 years, does not reveal any major advertising trend changes at all for individual sectors - for example, through innovation, transformation, increasing competition or increasingly advertised niche products due to fragmentation in the market. The limited receptive capacity among advertising recipients as well as the increasing volatility of advertising contacts on the net actually give every advertiser hope that the advertising budget is adequately equipped, relatively speaking. The key question remains how well a brand manages to become more visible "in relation" to advertising.
Top 10 of the month December
The top advertisers and most advertised products and services (excluding assortment and image advertising) in December 2016.
Search advertising integration
Media Focus has been collecting search advertising (Google AdWords) since 2014. From now on, the Internet media group will be reported including search advertising. The media mix is published monthly in the advertising market trend.
In the future, the integration of search advertising will allow a more accurate assessment of how large the share of the Internet media group actually is in the media mix across all media groups covered.
Media mix (incl. search advertising)
Advertising print distribution 2016 after integration of search advertising