SpendCheck

Analysis of Advertisers and Spot Activity for the years 2004 through 2007

DataCheck’s analysis highlights the fact that there is no solid conclusion that can be made across all four countries covered; however, several hypotheses can be presented based on our accurate media intelligence. Each country has distinct characteristics and to fully understand what drove the findings, we have studied the behavior of advertisers and levels of spot activities. Some of the trends show that many of the historical advertisers are now sharing their airtime with newcomers, making pay TV a more lucrative media for their marketing needs. Another interesting factor to be considered is that the introduction of advertising in new media, such as online and mobile has motivated advertisers to spread their budgets for a more rounded marketing campaign. SpendCheck data highlighted in the graphs below shows the trends that allow you to understand market dynamics across Latin America.

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Regional Activity by Market

Regional Data Parameters

Data shows investment activity of air time bought directly from pay TV networks (local or centralized). Data is not reflective of local commercials purchased directly from cable operators.

See more Argentina analysis here....	See more Brazil analysis here....
See more Mexico analysis here....	See more Venezuela analysis here....
Between 2005 and 2006 the Venezuela feed for the majority of networks was the pan-regional feed. Over the last 2 years most of the networks analyzed have gone to an exclusive feed for Venezuela which has resulted in a decrease in the number of advertisers and spots.
To have access to this critical information that will help you to make better business decisions, please contact DataCheck by email or call us at (561) 368-2443.

Analysis of Category Activity 2007 vs. 2006

Abstract of Pan Regional Category Findings

There were a number of significant changes from 2006 to 2007 because advertisers either increased their focus on Latin America Pay Television or in some cases decreased or moved their budgets from Pay Television possibly to other new media.

The analysis is based on number of spots and the selection of categories was done to highlight significant change in the marketplace for a cross section of the entire category universe. These Datacheck findings are based on congruencies of advertisers across the Argentina, Brazil, Mexico and Venezuela markets, defining panregional activity (either from the regions or centralized).

Health/Beauty: Fragrances showed the highest total spot growth during the two year period. Brazil was the main driver of this growth with a 48% increase followed by Mexico with a 37% increase. The growth was mostly driven by Procter & Gamble which grew by 13% compared to 2006 representing 41% of the total spots aired in this category. While the LVMH was number two in total spots, but trailed P&G significantly. The PUIG group increase their advertising aggressively in 2007 which resulted in a 153% increase in spots compared to 2006.

Wireless category, Sony Ericsson launched a series of new marketing initiatives in 2007 which resulted in a huge 173% increase in spots. This aggressive marketing effort also substantially impacted the growth of the Wireless Equipment and Services category. See more on wireless analysis here...

Toys:, like the wireless category, was impacted mainly by a single company; Hasbro vigorously promoted toys tied to various blockbuster movies. These campaigns resulted in a 39% increase in spots for 2007.

While the focus of some companies had a positive impact on marketing dollars allocated to Pay Television in 2007 the inverse is also true. There were some companies that relied less heavily on Pay Television in 2007.

Food-Packaged Goods: (Dairy and Others), Danone significantly reduced its reliance on Pay Television which resulted in a 14% decrease in the number of spots aired.

Baked Goods was significantly impacted because Grupo Bimbo S.A. De C.V. decreased the number of spots they aired pan-regionally by a huge 63%.

Clorox significantly reduced its budget for Pay Television in 2007 which resulted in approximately 75% decline in the number of spots they aired. While other companies in the Household Prod/Cleaners/Detergent category increased their spending, the decrease by Clorox resulted in an overall category decline of 15%.

To have access to this critical information that will help you to make better business decisions, please contact DataCheck by email or call us at (561) 368-2443.

DataCheck Unique Advantage: Distinction of Cable Operator Activity

Cable Operator Activity Analysis

Is the critical element of having the ability to process and report data accurately for Networks and companies operating on a Pan Regional basis. Without the ability to identify and separate this data from the SpendCheck reports, the data would show inflated numbers. Activity of local operators is provided as a special separate report.

Why is this discrimination important:

Enables you to determine the elasticity of the market place, realistically quantifying the available market revenue from a pan-regional or regional perspective.
Assures that the activity and revenue totals are not inflated by local activity.
Provides directional data to see how advertisers are placing their buys.

Sample Mexico Analysis

The chart below shows the advertisers and spot activity for the years 2004 through 2007 for Cablevision, DF. To view the full report on spots bought directly through Cablevision (DF, Mexico) and through the networks, here...

Note: The chart includes the activity of Grupo Televisa.

To have access to this critical information that will help you to make better business decisions, please contact DataCheck by email or call us at (561) 368-2443.