Research shows news media ad revenue increasing, driven by digital
Media Research Blog | 01 April 2018
A few weeks after the 2017 edition of the e-publication Observatory by the SRI and UDECAM was published, the trio of France Pub, IREP, and Kantar Media revealed the 2017 figures of the French advertising market with all media combined. Though the French economy shows positive indicators, here are three key results to keep in mind from this publication.
1.2%: Thanks to digital, the market confirms its growth momentum.
The total amount of advertising revenue received by the French media market in 2017 was €13.7 billion. This represents an increase of 1.2%. In 2016, this increase was 0.2%. The market continues to show signs of better health.
Obviously, the situation differs among different media. Indeed, it’s driven by the Internet (+12%) and particularly by display. The scope of “historical media” without Internet (that is, television, cinema, radio, press, and outdoor advertising) is down by 2.3%, while it grows by 2.4% when we add in digital.
3%: The number of advertisers continues to grow
There were 56,073 advertisers in France in 2017. That means a 3% increase, following an increase of 8% in 2016. This is an increase that has slowed down, but it nonetheless remains a positive indicator of advertising activity. This was especially true in 2017, which was an election year; those are never very favourable in terms of advertising investments.
The fourth quarter was particularly good, with an increase of 6%. With investments up 20% and a total of almost €500 million spent, the Lidl distribution brand is the top advertiser in France.
17%: The weight of distribution for the leading advertiser
With investments accounting for 17% of total expenditures, the distribution sector remains the leading source of media revenue. It rose 10%, driven in particular by specialised stores (an increase of 12%). Its weight is about twice that of the automobile sector (the second highest) and the culture/leisure sector (which is third highest).
On average, two-thirds of advertisers communicate via digital media. Some are particularly mature in this area. This is the case, for example, in the bank insurance industry, where 81% of advertisers use digital in their media mix.
For more details, all the results are available on the IREP Web site.