Spanish TV advertising prices drop 5%

Iñaki Ferreras ©RapidTVNews | 10-10-2011

The Spanish TV advertising industry fears the creation of a duopoly following a 5% fall in the average price of the TV advertising due to a general lack of investment during the country’s financial crisis.
According to data from infoadex, in the first half of 2011, the Spanish national TV in-the-clear networks banked €1.069 billion in advertising, 5.4% less than in 2010.
Yet, said the Spanish Advertisers’ Association (AEA), the industry is now suffering from the decision in 2010 from national public broadcaster TVE to remove all kind of commercial advertising. At the time AEA executives warned that the move could have an adverse effect on the industry if network executives did not change the way they work.
According to the AEA the big TV networks are taking advantage of its dominant market position to impose unattractive conditions for advertisers.
"We are worried that in reality we are in the hands of only two groups" said Rafael García Gutiérrez, the AEA's vice-president. According to him this situation will get even worse when Grupo Planeta's Antena 3 and Mediapro's laSexta merge so the advertisers will try to get the regulator to impose the limitations, guaranteeing competition.