The Dutch TV advertising market recorded a record turnover of 903 million euros last year – twenty percent more than in 2020. This is apparent from the annual report of industry organization Screenforce.
The turnover growth is mainly due to the corona time, in which more television is watched. The Dutchman spent an average of three hours and twenty minutes a day in front of the TV screen. That is six minutes less than in 2020, but ten minutes more than before the corona crisis. Of those two hundred minutes, the viewer spent 27 minutes on delayed viewing and 46 minutes on streaming services such as Netflix via the TV screen.
Due to the corona crisis, the turnover of supermarkets and online stores rose sharply, which translated into higher advertising expenditures to stay ahead of the competition. Supermarket Jumbo increased its budget by 62 percent, making it almost the largest advertiser in the Netherlands – that remained Procter & Gamble. Star director Frank Volmer, who provides TV advertising for the public broadcaster, also mentions the abandonment of the ban on gambling ads. This resulted in a major growth in advertising from companies such as Lotto, Toto and Staatsloterij. To limit irritation among the viewer, the Ster has imposed a limitation this year: only one game of chance advertisement per block.
Furthermore, it was a year with many major sporting events, which ensured many viewers and a lot of advertising.
Increasing scarcity
From this year, the Ster must shrink: Hilversum and The Hague have agreed to gradually halve the advertising time. This year it is ten percent less. Volmer hopes to partly compensate for this decline with higher prices: with increasing scarcity, the price per advertising minute will rise. Now he is already seeing that scarcity effect: on the first day of the month, he is usually immediately ‘sold out’.
According to Volmer, many companies chose television over online advertising in uncertain times, because TV offers a “very stable” reach and is said to be a relatively safe environment: the advertiser is less likely to focus his advertising around controversial content.
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