By Christopher Emsden
ROME--Italy's advertising market shrank 17.2% in the first five
months of 2013 compared with the same period a year earlier,
contracting at a much faster rate than the overall economy, Nielsen
reported Thursday.
The drop, measured in value terms, was sharper for print media,
as newspapers faced a 23.3% fall and magazines a 24.4% drop, while
television broadcasters suffered a smaller 16.2% decline, according
to Nielsen's data.
Internet advertising declined only 0.3%.
Italy's economy has contracted for at least eight consecutive
quarters, while the long contraction in household spending began
even earlier and is expected to continue well into 2014.
The broadcasting lobby has called for tax breaks for
advertisers.
Telecommunications, toiletries and supermarket chains have
reduced their advertising spending by less than 10%, while the
biggest cuts--all above 23%--were seen in the automotive and
white-goods industries, as well financial services and publishers
themselves.
Fiat SpA (F.MI) has been losing money for years in Italy while
Indesit Co. SpA (IND.MI), which makes HotPoint and other kitchen
appliances, has announced large layoff plans. As for media
companies, state broadcaster RAI SpA is negotiating more than 600
job cuts.
The pace of the decline in advertising appeared to be slower in
May, confirming anecdotal observations made by Mediaset SpA (MS.MI)
executives.
The improvement was strongest for toiletries, telecommunications
and construction-related sectors, according to Nielsen.
While carmakers as a whole cut their advertising spending by
EUR100 million over the five months, companies varied hugely in
their decisions, with some cutting their outlay by 45% and others
boosting theirs by 20%, Nielsen said. Investments in digital or
Internet-carried advertising tripled in some cases, while spending
on television and print was slashed.
Write to Christopher Emsden at chris.emsden@dowjones.com