Poor advertising market thrust media into crisis: Unsupported TVs, "online" can print - Technology
Poor advertising market thrust media into crisis: Unsupported TVs, "online" can print

Poor advertising market thrust media into crisis: Unsupported TVs, "online" can print

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Only 350 people had access to the Internet in Albania in 1995, according to World Bank data. The low was the use of the Internet until 2006, where it gradually reached almost 10% of the population. Then, rapid growth began to reach 2016, where 66% of the population, or almost two million people, have access to the network.

Over the last five years, the Internet and technology have rapidly changed the way Albanians communicate, being informed, having fun and spending their free time. YouTube, digital channels, Netflix have narrowed the space, which was once dedicated to the TV. Smartphone has become the companion of everyone and the first information tool, not just for the young, but also for the middle age already.

In line with these developments, businesses are finding more efficient and more direct forms to reach the customer. For their part, the media have to move quickly to adapt to this trend and not to be left behind: television shows with more and more entertainment programs to attract distracted viewers and print media, news, review reviews you did not read anywhere the day before. But this is becoming more difficult, as the main source of revenue, advertising, is coming to shrink, with large businesses that not only are cutting marketing budgets continuously but are also orienting themselves to online advertising.

For several years, the country's advertising market is estimated to be in the range of 37-39 million euros a year, with the major share of televisions being around 70% of the total. They are able to withstand a fluctuation of about 3% a year, rising times and falling times. Double-shrinking is the print press that is falling steadily from the strong competition coming from online media.

The latter are the only ones who are enjoying the growth of advertising, as businesses are gearing towards this efficient form of targeting the target market, channeling in this direction what they save from the print press. Outdoor advertising recovered after the fall in 2015, to recapture shrinkage in 2017.
On the business side, marketing budgets are already shrinking, especially by telecommunications companies, which are also the largest advertisers in the country. The closure of Plus Communication by the end of 2017 removed the advertising market about 1 million euros per year.

The advertising market 2016-2017

In total, the country's advertising market in 2016 is estimated to have reached 39.3 million euros, with a slight increase of around 3% driven by improved television revenues, strong online growth and a better period of outdoor operators.

"Monitor" has made the advertising market rating for 2016, based on direct indicators measured by several directions:

the revenues of its main categories, televisions, print, outdoor and online, measured in the main part of the turnover that key stakeholders have stated in their balance sheets submitted to the National Business Center (NCC).
Expenditures of major marketing companies, mainly telecommunications, banks, fast moving products (FMCG), according to detailed reporting on the respective balances.
By 2017, it is estimated that the market overall dropped by 2.2% to reach 38.4 million euros. All segments, with the exception of the online one, reported a decrease, which was the largest for the print media.

The 2017 estimate is based on the amount of seconds (TV sales unit) of the TV commercials, surface area (in cm²) in print, online (px²) and outdoor (m²) according to data provided by the Idra Media monitoring company (accurate data, according to balances reported by televisions, radios, outdoor companies are available only after July).

Even for 2018, advertising agency experts in the country are not very optimistic. Companies are continuing to cut marketing budgets as a reflection on the not so good economic situation. The best option, according to them, is for the market to stay at least in 2017 levels.

television

From the statement on the main TV balance in the country, it is estimated that the revenue of this segment was 31 million euros in 2016, an increase of about 3.3% on an annual basis, marking the second consecutive year with a slight increase. The main influence on this improvement was provided by the television

Klan, ABC News, Report TV and less Scan TV, while other operators declined declining.
The high visibility of Turkish telenovelaks has been another magnet for advertisers that we get to a sensitive audience at a relatively low cost.

Vizion Plus and Klan have provided space and time in 'prime time' programming in these telenovelas, while Top Channel continues to resist, focusing on its products.
By 2017, it is estimated that the market has fallen easily by 2% to EUR 30.4 million, as Idra Media's monitoring shows a slight shrinkage of advertising seconds transmitted to major televisions. Written Press-Printed revenue is estimated at around 2.2 million euros in 2016, with a strong annual decline of 18 percent, based on the revenues reported in the balance sheet of the country's leading media and monitoring by Idra Media. All newspapers except Koha Jone have declined, which for some was double-digit. The contraction continued in 2017, according to Idra Media's monitoring, as the market is estimated to have dropped to 2m euros, with a further reduction of at least 10%. The remaining advertisers are mostly those who have ownership links with the respective group media, while telecommunications, which was the main source of income, was moved online. Outdoor - The outdoor market is estimated at around 3.2 million euros in 2016, calculated on the basis of the revenues declared in the balance sheet of the main companies operating in this category. This segment has recovered, with a 7% increase, after shrinking for two consecutive years. But the decline was restored in 2017, according to Idra Media's monitoring, by about 9%, reaching 2.9m euros. Internet - The online market is rapidly developing and difficult to measure due to its high informality. Since 2015, when this segment is monitored by Idra Media, it has grown rapidly. In 2016, the ad area increased by 68% yearly. The expansion continued in 2017, albeit at a slower rate of 16%. The online advertising market is estimated to have reached 2.4 million euros in 2017, passing for the first time the level of advertising in the print media. 30% of them go mainly to the Top Channel website and the Balkan Web portal. Radio -Radio is estimated to attract around 0.9-1 million euros a year, according to revenues announced by the largest radios in the country, with a steady decline.

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