Bulgaria's Advertising Market Dwindles in 2010, Online Ads Up

Business | March 23, 2011, Wednesday // 15:46|  views

Krassimir Guergov, head of the Bulgarian Association of Advertising Agencies, at an advertising forum in Sofia, March 23, 2011. Photo by BGNES

Bulgaria's total advertising market amounted to BGN 329.18 M in 2010, which is a decline of 13.9% compared with 2009.

Krassimir Guergov, chair of the Bulgarian Association of Advertising Agencies, announced at an advertising forum in Sofia, as cited by BTA, that the advertising prices saw a similar decline compared with their levels in 2009.

"The preliminary results for 2010 show a decline that is twice as large as the original forecasts," Guergov pointed out.

A year ago, the Association of Advertising Agencies expected that Bulgaria's advertising market will decline by about 7%-10% in 2010.

The substantial 2010 drop comes against the backdrop of the staggering 27% decline in 2009 compared with 2008, when the Bulgarian economy was still booming.

The Association's forecasts for 2011, however, project a growth of the advertising sales in Bulgaria of between 7% and 10%.

Internet advertising is the only advertising sector that registered growth in Bulgaria in 2010, according to the AAA data. It grew by 5% year-on-year, and there are optimistic projections for 2011.

The net profit in Bulgaria's TV advertising decreased by 10.5% in 2010 year-on-year even though the gross revenues are about the same as in 2009. The major TV channels in Bulgaria have reduced their advertising prices by 5%.

The TV advertising market is expected to bounce back growing between 7% and 10% in 2011 – which is confirmed by the sales that TV advertising generated in January and February 2011.

There was a staggering decline is the advertising in the press – 12%, with newspapers suffering twice as bad as the magazines; when subtracting bonuses and discounts, however, the real decline in press advertising is estimated at 32%. There are forecasts that some Bulgarian print media will have to be shut down in 2011 over the lack of advertising revenue.

Radio advertising dropped by 3% in 2010, and there are positive expectations for this advertising sector for 2011. Outdoor and billboard advertising saw a decline of 12% in 2010.

Even though it was the only advertising sector to grow in 2010, Internet advertising has a share of only 4% of the total advertising market in Bulgaria. TV ads still rule all with a share of 65%, followed by the press with 16%, the radio with 8%, and outdoor advertising with 7%.

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Tags: advertising, advertisements, ad, Krassimir Guergov, Association of Advertising Agencies, TV, radio, press, online advertising, online advertisement, Internet


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