X-ray of the television sector in Spain in 2017

Advertising investment, the essential economic nutrient of free-to-air television, slows down, while conventional consumption grows, the strength of the large private channels remains and pay television increases its relevance in the Spanish audiovisual ecosystem.

Windward Communication has published a report in which it takes stock of 2017, which now ends in the television sector. This report summarizes the main market headlines, in terms of investment, consumption, operators, as well as the enormous influence of OTT companies, along with an analysis of audience performance and viewer behavior.

After the increase in advertising investment between 2014 and 2016, where 420 million euros were recovered in relation to the loss of nearly 1.8 billion euros on the figure collected in the year 2007, ten years ago now, where a business turnover of nearly 3.5 billion euros was recorded, the year 2017 leaves us with bad news for the conventional television industry as advertising investment by brands and advertisers for the entire television advertising market.

The first nine months of the year accumulated 1,528 million euros of investment, less than one percent growth over the same period of the previous year. In 2016, the amount of 1,515 million was recorded. That is, a growth lower than our country's own inflation, which is +/- 1.7%. Only 13 million euros more in 2017 compared to 2016, according to Infoadex data.

According to these data, the total advertising investment for 2017 will be around 2,140 million euros, when in 2016 2,122 were recorded. That is, a rise lower than the increase in the CPI for the year as a whole.

In relation to 2007, the result of advertising investment in the fiscal year 2017 indicates that there are still 1,300 million euros to be recovered compared to the nearly 3,500 million in 2007, an extraordinary amount, and even more so if one takes into account that Spain's domestic consumption in these years has been positive with sustained growth in recent years that exceeds the three percent annual increase in the Gross Domestic Product (GDP).

If the GDP grows, thanks mainly to domestic consumption, what is truly worrying, in Barlovento's opinion, is that advertising investment has slowed down in a sector that always anticipates economic reactivation or indicates the beginning of growth stages.

On the other hand, it should be noted that the two large private television corporations in Spain (Mediaset and Atresmedia) account for 85.2% of all advertising investment broadcast on television.

Television consumption

In 2017, television consumption in Spain stood at 240 minutes per person per day, which means an increase of seven minutes more than in 2016, which is a high amount thanks to the addition of the “guest factor” concept that Kantar Media and the market incorporated into the measurement last March.

Consumption is made up as follows: 224 minutes of linear or streaming viewing (six minutes less than in 2016), 4 minutes of delayed viewing (one minute more than in 2016) and 11 minutes of guest consumption, which together register (including decimals) a total of 240 minutes per viewer per day.

Despite the bad omens that sometimes loom over streaming or online television, the dedication of viewers to traditional television remains extraordinary strong, however it should be noted that this fact is not accompanied by greater advertising investment and, therefore, money dedicated to the production of programs of any television genre or subgenre.

Telecinco is the leading network for the sixth consecutive year, although with its annual minimum and the lowest data to lead the year's ranking.

The year leaves us highs for Energy, 24H, Gol and the channels created in 2016: Atreseries, Dkiss, Bemadtv, Ten and Real Madrid HD. The channels that show increases in the last year are La1, Thematic Pago, Autonómicas, Energy, Paramount Channel, Disney Channel, Atreseries, Gol, 24H, Dkiss, BeMadTV, Ten and Real Madrid HD. For their part, Telecinco, Antena3, LaSexta, Cuatro, FDF, Divinity, Clan, Mega, DMAX, Boing, Teledeporte and private regional companies registered decreases.