This year's European Football Championship is expected to boost investments in advertising for television, written press and the Internet.
This week's BUSINESS Magazin reveals the strategies behind several media companies and advertising agencies.
A study released in December 2007 by US-based Zenith Optimedia shows that investments in advertising are expected to increase by 6.7% this year, and reach around 485 billion dollars (around 307 billion euros).
Among the reasons behind this increase are the US presidential elections, and, to a greater extent, the European Football Championship and the Olympic Games. Of course, these factors do not automatically come into play.
"As it was discernible over the last few years, the Olympic Games have a reduced impact on the volume of advertising in Romania, but the European Championship will be the centre of attention due to the participation of the Romanian national team. The established advertisers will supplement their budgets in the June-July period," says Radu Voicu, Media Planner at MindShare, the media buying division of the Ogilvy group.
Voicu adds that during Euro 2004, TVR 1 (the national public TV channel) achieved a total of 40,327.8 GRP (gross rating point - the percentage of the audience which viewed a commercial), over 25% more than during a normal period, with an even larger increase forecast for 2008, in the wake of the Romanian football team's participation in the European championships, which will take place in Austria and Switzerland.
Costi Mocanu, chief executive of the Pro TV company, which includes Pro TV, Acasa TV, Sport.ro, Pro Cinema, Pro TV International channels, and holds the licence for MTV Romania, says the value of the sports advertising market for television depends greatly on the country's performance at events, such as the European Football Championship and the Olympic Games, on the number of teams that qualify in the UEFA Champions League groups, as well as on the broadcasting rights for League 1 (the national football league).
"If the matches are broadcast by Pay-TV channels, it will definitely mean less money spent on TV advertising during matches.
Some budgets will be transferred to other sports, or to different fields," explains the chief executive of Pro TV S.A.
The Professional Football League plans to sell the broadcasting rights for league matches over a three-year period, for around 18 million euros per season, a sum considered high for television.
On the other hand, Dumitru Dragomir, president of the League, says he has already received "two offers worth 54 million euros, which is a pretty good price."
This season, TV broadcasting rights are held by the Telesport channel, which sold some of its options to Kanal D, TVR1, Antena 1 and National TV.
Advertising on TV
The European Football Championship is expected to stimulate investments in advertising, with the
Romanian team taking part in the competition
Investments in advertising will increase by 6.7% this year, to around 485 billion dollars (around 307 billion euros), according to a study released in December 2007 by American-based Zenith Optimedia media services group
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