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In 2012 We expect a net growth in advertising of up to 4%

03.04.2012 | 13:57

In 2012  We expect a net growth in advertising (advertising market) of up to 4%
Internet is the only media channel reporting a growth in 2011.
The advertising market in 2012 is expected to report a net growth of 3-4 %. Globalization will have beneficial effect on this optimistic trend. This is the forecast made by the Chairperson of the Bulgarian Association of Communication Agencies Krassimir Guergov at the opening ceremony of the Sixteenth forum of advertising AdForum 2012. This event of the advertising companies traditionally reports the achievements of the industry and outlines the new direction of searching efficient and successful communication by making a snapshot of the market trends.

At Mr. Guergov's opinion this growth is based also on several strategic major budgets planned by the government; including a BGN 15 million project intended for digitalization, BGN 10 million of which will be spent on the market. "Several public procurements are anticipated to have a significant effect on advertising, especially in the press. The forthcoming European Football Championship will attract some BGN 1 million of advertising investments, as well." said the Chairperson of BACA.

The Association approved its new name and logo and then, by proposal of its chairperson, amended its Articles of Association. Thus upon expiry of a three-year period the two deputy chairpersons will be granted management authority on a rotational principle, clarified Krassimir Guergov.

According to the analysis made by Mr. Guergov, in 2011 the gross volumes of TV advertising went up by 8.4% while net volumes decreased by 4.7% as evident from the data of GARB. "It means that the TV operators have made a dumping, which is expressed in a difference of some 13-15%. I don't know whether all televisions did it, but some of them did it for sure, as we all see the important gap between gross and net volumes compared to the last year", established Guergov. It is not possible to give a clear picture of the gross revenues in the radio business; however the net budgets there decreased by 7,2%. According to the chairperson of BACA there is significant dumping in the outdoor advertising business, as well, expressed by a 21% downfall of net volume in addition to reduced gross volume.

"The business on Internet is on the positive track again compared to all other media and things there are regulated. The gross volumes went up by 16% and the net volumes - by 11%.

"The market dropped from BGN 790 million in 2008 to BGN 702.77 million in 2011. The lowest values were reported in 2009 - BGN 647.33 million. The results in the last year compared to those in 2009 are optimistic. 2011 ended by net revenue of BGN 309 million", summarized Krassimir Guergov.

 A brief overview of the Bulgarian advertising market in 2011