TV advertising for June half declines by 3.26%

TV advertising for June half declines by 3.26%

Television advertising revenue reduced by 3.26 per cent (or $9.775 million) to $289.796 million for the six months to 30 June 2006 compared to $299.377 million for the same period in 2005.

The NZTBC’s Executive Director, Bruce Wallace said, “The small drop in revenues from advertising represents some realignment in the free to air industry and supports the view of many economic commentators of a gradually slowing economy. It is no surprise that the spending trend has moderated on television however the industry remains confident about future positive growth when the economy returns to a stronger growth cycle.”

Nielsen Media Research reported category growth in the first half of 2006 over the same six months in 2005 in insurance, investment, finance, banking and leisure and entertainment. Demand declined in beverages and telecommunications, automotive and home improvements.

Wallace said that television companies were reporting solid sales in the traditionally strong winter viewing period however they were realistic about future revenues in the current market conditions.

The returns are from CanWest TVWorks (3/C4), Television New Zealand (TVOne/TV2) and SKY Network Television including Prime.

The NZTBC releases television advertising revenue returns to the market every six months.

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