The growing demand for TV advertising on the one hand and the excepted growth in streaming services on the other hand can have an impact on the development of prices for TV GRP.
The growing demand for TV advertising on the one hand and the expected growth in streaming services on the other hand can have an impact on the development of prices for TV GRP. “Given the market situation, we expect inflation of up to 10%,” says Ladislav Dianiška, Sales Director of Media Club, commenting on possible development in the coming months (Media Club represents the stations of Prima, Barrandov, Óčko and other groups on the TV market).
Media Club registers the growing demand for TV advertising. “Although we were concerned about the cutting of budgets at the beginning, this has not happened so far and we expect an increased demand in the autumn season. A vast portion of advertisers seek to make maximum use of the easing after the last year’s restrictions relating to Covid-19 and motivate customers to purchase and use their services. If the easing continues, we can expect a trend of increased demand in the autumn season, which may have an impact on TV ad prices for additional budgets in the second half of the year. We are working on the composition of the autumn schedule to satisfy clients’ requirements and the increased interest in TV advertising,” assesses the situation Ladislav Dianiška.
On the other hand, he is aware that making any predictions in today’s Covid-impacted times is very difficult. Advertisers’ concerns about the unpredictable situation in the autumn may have an impact. “We are happy that advertisers’ interest in advertising with Media Club has been growing,” he says.
The Prima group has been successful in satisfying the increased demand by clients. What is uncertain are the summer months. “We estimate that complications with completing campaigns will occur in summer when there are fewer viewers sitting in front of their TVs in general, which may be amplified by people’s desire to go out of town,” he says, indicating possible development.
The development of TV GRP prices for the next year may be impacted by the trends related to the growth in ratings of streaming services, where the interest in these services was driven by the Covid-19 pandemic, and on the contrary by a possible decline in linear TV ratings. “In general, the trend of viewers moving from linear TV started a long time ago. However, the trend was suppressed in the Covid time because there was not much to do, ratings were growing thus increasing GRPs on the market. Linear TV ratings were not the only indicators that were growing. All video content market increased its viewership, i.e. paid services such as Netflix or HBO. People learnt to consume the content and according to our research they are not coming back to linear content with the same intensity. If the market returns to the original trend and reflects the outflow to paid services, we can expect a slump in ratings, and GRPs, which may – and will – have a great impact on GRP prices,” he estimates. According to him, Media Club reflects the increasing need of clients to target their campaigns more precisely and plans to focus more on campaign optimisation (eGRP) in order to keep or improve the price/performance ratio.
For the second half of 2021, Dianiška estimates similar development as in the first half of 2021 and second half of 2020, when demand was higher than in previous years. The volume of ads before Christmas should be growing same as last year according to estimates.
He also notices the growing recovery not only in TV advertising but also in other media types. “Given the Covid-19 pandemic in the previous period, we perceive the current market recovery in all media types including radio stations while before, the demand for TV and online advertising dominated. We are happy that the portfolio of clients has been growing. In the period of extraordinary government measures our clients were predominantly from the sector of online services,” he adds.
Source: mediaguru.cz
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