Krassimir Guergov: Up to 4% growth in advertizing in 2012

''2012 would mark a positive growth in the advertising market within the range of 3-4% in net figures. Globalisation will render its positive impact on this optimistic trend,'' according to the forecast of the Chairman of the Bulgarian Association of Communication Agencies (BACA), Krassimir Guergov, made at the opening of the 16^th consecutive edition of the AdForum 2012 organised by the advertising branch. Traditionally, the advertising event reports the latest achievements of the industry and traces new directions for seeking effective and successful communication, while outlining the situation of the current market trends.

According to Krassimir Gergov, the positive growth would be triggered by several strategic big budgets planned by the government, among which is the one intended for digitalisation worth BGN 15 mln, while some BGN 10 mln would go for the advertising market. "In fact, several public procurement contracts are expected to affect more seriously the advertising initiatives especially those related to the press sector. The latter outlook is made against the backdrop of the upcoming European Football Championship, which will bring advertising investments of around BGN 1 mln," indicated the BACA Chairman.

Having adopted its new name and logo, following the proposal of its Chairman, the Association also amended  its statutes. Thus, after the expiry of the 3-year period of management based on rotation principle, both deputies will receive a management mandate, specified Krassimir Guergov.

According to the analysis delivered by Guergov, in 2011 the gross volume of TV advertising increased by 8.4%, while its net volume dropped by 4.7%, which is evidenced by the data of GARB (Gfk Audience Research Bulgaria). "This means that the TV broadcasters have used dumping, which reflectedas  a difference of 13-14%. I do not know whether all broadcasters have done the latter, but some of them certainly did since we observe such a large difference between the reported gross and net volumes year-on-year," concluded Guergov. With respect to the radio advertising, we cannot give precise figures of the gross revenues, but its net budgets decreased by 7.2%. In the words of the BACA Chairman, the outdoor advertising has also reported a considerable dumping because not only its gross volume decreased, but also its net one slumped by 21%.

''Internet advertising, where things are regulated, reported again positive results compared with the other media. There was increase in the gross volume by 16% and a 11% hike was reported in the net one, respectively.

"During 2008 – 2011, the market revenue dropped from BGN 790 ml up to BGN 702.77 mln. In fact, the lowest values of BGN 647.33 mln were reported in 2009. Compared with them, last year's figures are optimistic since 2011 ended with the net revenue of BGN 309 mln," summarised Krassimir Guergov.

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