As we continue to see signs of a return to a more buoyant economy – businesses opening back up, employees returning to the office and the movement of goods and services, there are questions that still remain about whether some sectors will bounce back quite in the same way and at the same pace as others.
One such area is in advertising, particularly across traditional media – print and broadcast, where sales appear to be picking up. It’s something media intelligence firm Media InSite Ltd, is watching closely, especially as the “Mother of all Carnivals” might play a factor in the boosted sales.
Since 2015, the Trinidad-based company has been tracking ad placements and brand presence, not only in T&T but across the Caribbean.
For 2022, the big picture was that T&T press and broadcast advertising reversed a two-year decline, rising 32 per cent year over year. But compared to 2019, the last full year before the pandemic, 2022 total activity was down nine per cent.
Media InSite CEO Allison Demas says the pandemic stopped some advertisers in their tracks.
“We saw many businesses slow down and some even grind to the halt,” she pointed out.
“Advertising spend decreased significantly, especially on traditional media platforms. T&T was not the only country to have experienced this, but it should be noted that we started to see a drop in advertising spend –particularly in print and television – even before the virus spread,” Demas said.
Media InSite’s analysis focuses on advertisers in key sectors such as banking, credit unions, insurance, telecommunications, energy, retail, manufacturing and government. The company tracks the number of ads placed and the “open rate” cost of those ads. Open rate is the rate card price or the declared cost for advertising and does not account for client-specific deals or discounts that media houses may offer advertising agencies and large clients.
Although total advertising activity for 2022 rose to a comparatively healthy 32 per cent from 2021, it still wasn’t enough to interrupt a prolonged downward trend. Last year’s monitored investment was nearly nine per cent below 2019’s total investment.
Of the three media types monitored, radio improved the most in 2022, airing 36 per cent more spots than in 2021. TV added 33 per cent more spots. Newspaper found itself in a strange place, having increased ad space for key categories nine per cent, but with fewer advertisers.
While Media InSite data shows 2022 newspaper advertising rose nine per cent from 2021, again, that was not enough to end an overall steady decline going back at least eight years. Between 2015 and 2019, press ad spending in key categories fell 38 per cent. Last year’s investments were 5.5 per cent below 2019.
Across all monitored media, the number of active advertisers in 2022 rose 19 per cent from 2021. Radio attracted more returning advertisers than any of the media channels, selling to 26 per cent more advertisers in 2022 versus the previous year. Television added 10 per cent. Newspaper showed a slight decline of 1.4 per cent.
Of the top 25 advertisers in 2021, about 2/3 (16) remained in the top 25 for 2022. Number 1 for both years was Omega XL health supplements, due to its heavy investment in television. Courts, which has traditionally ranked in the top five advertisers, occupied seventh place in 2021, but moved up to number two last year.
Republic Bank was the number three advertiser in 2022, down from second place in 2021. Scotiabank dropped from third to sixth. And First Citizens moved from sixth to seventh place.
Interestingly enough, in addition to investing in traditional media in 2022, these three commercial banks also advertised actively on Meta-owned social channels: Facebook, Instagram and Messenger. Scotiabank led the way in 2022 with the most advertising activity across all three of these social platforms followed closely by Republic Bank.
Are the gains too small and potentially short-lived to be considered a trend? Media InSite’s Demas believes the signs are positive enough but recognises that with the growth of social media and other digital platforms businesses are reconsidering where they place their advertising dollar.
“We are watching closely to see how this will unfold in 2023. We are in the middle of Carnival, the first carnival since the pandemic, dubbed ‘The Mother of all Carnivals’. We are seeing more festival and event-related ads, but the question is will it be sustained post Carnival,” Demas said.
What is taking place in T&T in the sector, may be a microcosm of what is happening globally. In December 2022, Forbes reported that while it anticipated an increase in advertising spend overall, the challenges of a sluggish US economy would continue to have an impact on the performance.
Further the article, which referenced data insights and intelligence from global media watch organisations such as Magna Global and Zenith, indicated that while traditional media will see some gains, online and social media will continue to outpace traditional media as companies and ad agencies seek more innovative ways to capture the market.
Demas is taking a positive outlook as she reflects on activities in the business and State sectors. She also notes that while the shift to more digital advertising is not a sign that traditional media is going anywhere.
“Advertisers with large budgets targeting mass audiences will continue to invest in traditional media, particularly radio. That said, with more Gen Zs entering the workforce, a growing number of millennials with more purchasing power and consumer purchasing shifting to online, digital advertising will increase.
“What we at Media InSite are seeing is traditional media houses are growing their digital platforms to offer media buyers and their clients more choice. Agility and flexibility are what is needed.”
