GEORGIAN ADVERTISING - STAGNATING BUT DEPOLITICIZED
04 July, 2013
GEORGIAN ADVERTISING - STAGNATING BUT DEPOLITICIZED
Georgian advertising sector became stagnated but depoliticized and more competitive after the power shift, - this is the message Transparency International-Georgia, an non-governmental watchdog sent through its report “The Georgian Advertising Market – Competition at Last?”
After the October Parliamentary elections of 2012 that brought the power shift in Georgia politics no longer plays a major role in companies’ marketing policy. However, due to perceived political uncertainty, a decline in domestic and foreign investments, as well as changes of ownership
and management of several television stations and advertising companies, private sector advertising spending in Georgia did not grow, a new report by Transparency International Georgia (TI Georgia) finds. According to the report aired on June 28, 2013, shortly after the change of government, the structure of the advertising market saw significant changes: General Media, the company that previously held a monopoly on selling advertising on national TV no longer exists; TV stations now compete against each other for advertising clients using different sales teams. Politics no longer plays a significant role in the allocation of advertising budgets. Companies at this point do not appear to practice self-censorship when planning marketing budgets.
The total advertising spending in 2012 was around USD 54 million out of which at least USD 8 million came on spending by political parties. Television remains the ad market leader by covering approximately 72% of all advertising spending with close to 95% of this money going to Tbilisi-based stations. Approximately 11% of advertising spending goes to outdoor advertising, 10% on radio, 5% - on print media and 2% comes with the internet advertising.
While both Rustavi 2 and Imedi [imputed to the ex-power control] saw a decline in advertising revenues, Maestro, Kavkasia and TV9 [acknowledged as opposition channels] saw a strong revenue increase in 2012, with strong growth ahead and shortly after the elections. After the last December, their monthly revenues took a sharp decline. Market stakeholders believe that such growth in ad revenues was partly an emotional response to political developments, rather than a decision based on marketing assessments, broadcasters’ content, and ratings. Investors continue to remain careful and concerned about perceived political instability and coming presidential elections in autumn 2013. A decline of private sector advertising spending this year appears highly likely, due to a strong decline in spending in the first three months of this year after companies’ tightened advertising budgets and economic growth slowed down. Now, much depends on when local and international investors regain their confidence in the country’s stable business environment.
“Many media outlets, especially those located outside Tbilisi, continue to lack qualified staff that would be able to engage companies and generate advertising revenues”, Mathias Huter, a Senior Media Analyst with TI Georgia, said. “As politics is no longer a major factor in businesses’ allocation of marketing budgets, media outlets that provide serious reporting really need to increase their efforts to become financially sustainable. These efforts should include the building of new partnerships with advertisers and other outlets in their sector in order to improve available audience data and encourage more advertising spending by highlighting its positive impact for businesses.”
TI Georgia recommends Parliament to consider reversing an amendment to the Law on Broadcasting made in 2011 that extended the maximum time a TV station is allowed to air advertising per hour. Limiting the prime time for ads and stricter rules would help to stabilize and sustainably grow the rates of national TV stations and encourage more diversification businesses’ advertising spending. Donors should support media outlets, especially smaller outlets based outside Tbilisi, with training opportunities in management, distribution and advertising sales, while encouraging and supporting stronger cooperation between media outlets and innovative approaches to generate more income.
Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
21.03.2019
22.03.2019
USD
1
USD
2.6816
2.6793
EUR
1
EUR
3.0439
3.0515
GBP
1
GBP
3.5499
3.5182
RUB
100
RUB
4.1689
4.2031
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6793
EUR
1
EUR
3.0515
GBP
1
GBP
3.5182
RUB
100
RUB
4.2031
March 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31