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News Analysis: the effect on media spend during the Euro 2012 Championships and London 2012 Olympic Games

Reports have suggested that advertisers have been shy to spend in July and August, as a result of the BBC broadcasting the Olympics, resulting in the expected uplift in advertising revenue for commercial broadcasters such as ITV and Sky, being heavily affected.

Media Week has reported that an anonymous source has claimed that media agencies are wary of the London 2012 Games, claiming that it is likely to effect the expected increase in advertising for the second quarter as a result of the Euro 2012 football championships.

Douglas McCabe, media analyst for Enders Analysis said that while the company hadn’t issued a specific report on the impact on advertising, it was likely that both the Olympics and the Euro 2012 Football Championships would create ‘a spike’ in expenditure for a short period.

“Such activity will require agencies and brands to redistribute existing budgets rather than create new, larger budgets. For example, national newspapers will see strong supermarket and retail advertising during key Olympics' days in particular, but across the calendar year as a whole advertising income will be down,” he added.

Meanwhile, Luke Duffy, head of broadcast at Aegis Media revealed that demand for space within Euro 2012 was ‘healthy’.

“ITV should enjoy year on year revenue increases of between 12-16% and this could increase further if England do well. Overall the market is currently forecast to increase at around 3-5% but this is being driven by ITV; without Euro 2012 and ITV the market would be in a pretty depressed state,”

Duffy added; “After the Euro 2012's demand tails off with the Olympics having at best, no discernible effect and at worst, a negative effect on the July and August marketplace as advertisers plan away from these Olympic months. July and August are currently forecast down six and three respectively but a strong performance by England at Euro 2012 would attract late money and revive the market in these months.”

Finally, the always pragmatic Stuart Feather, managing director of Republic of Media, told The Drum that, historically the actual increase in advertising spend was never met in reality by advertisers during footballing tournaments.

Feather also said that today, contractors handling the Euros were doing less well than ever before and had less share than they did have years ago due to the growth in the number of channels.

“No doubt these events are creating some kind of upturn, but that is from a base that has been adjusted down,” said Feather who added that he expected plenty of digital activity over a short period. He also warned those who were not seeing a benefit had clearly not planned well enough in advance, adding that media agencies should now be looking towards activity during the World Cup in two years’ time.

Iurii Osadchi / Shutterstock.com

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