In Spain, television ad spending has dropped since the downturn. So with TV ad time not as profitable as it once was, the government has made the decision to wipe out advertising on the two public TV channels starting in September, to emphasize a clearer “public service” orientation. There will be no more ads on the Televisión Española (TVE) network, and new taxes on private channels and telecom companies will support public TV budgets.
The first reaction from TVE’s commercial sponsors is clear: They oppose this move and want at least 12 minutes of advertising an hour. Their argument: Less advertising will mean less consumption, and so the downturn will be even worse.
Optimists might note that the Internet keeps on growing as a medium—online advertising was up 3.6 percent in the first quarter. Many Spanish marketers are still using it as an extension of their media plans and starting to transpose their conservative adverting culture to the Web. This decision may push them to bet on the Internet in increasingly clever and more effective ways, leaving a lasting impact on the ad world here after the crisis ends.
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