THE SLOVAK media market may contract by 20 percent in 2009, according to an analysis of the advertising and media market published by the TNS SK company and the Stratégie monthly.
The reason for the decline is the stagnation in spending on advertising in the media, mainly because of the economic crisis, the SITA newswire reported.
A significant drop is predicted in the second half of 2009. For example, television broadcasters speak of a significant fall not in the number of commercials but in the price they command.
After major growth in expenditures on advertising in recent years, a slowdown was projected this year even without the economic crisis.
After the crisis ends, the media market will probably not climb back to the advertising revenue levels of 2007 and 2008, the analysis predicts.
Lower advertising revenues may lead to a decline in which some firms could go out of business.
Periodicals, such as dailies and weeklies, are in a critical situation, the data from 2008 suggests, as total real advertising expenditures in the media rose by 11.2 percent year-on-year and expenditure on activities such as public relations, direct marketing, etc., went up by over 16 percent.
Against a total 12.5 percent growth in the Slovak advertising market last year, press publishers posted growth of only 3 to 7 percent, the lowest in comparison to other types of media – television, radio, external forms of advertising, the internet and cinema advertising – SITA reported.
The most successful publisher in Slovakia was Ringier, which produces the Nový Čas tabloid daily, while the most successful TV station was Markíza.
Rádio Expres earned the highest revenues from advertising among Slovakia's radio stations.