Overview of the Broadcasting Advertising Market in 2020
Transparency International Georgia (TI Georgia) studied the current state and the main tendencies on the advertising market in 2020. The study examines how the restrictions imposed in order to curb the spread of COVID-19 and the money spent by political parties on political advertising during the parliamentary elections affected the advertising market.
The following findings were made in the annual report:
- In 2020, compared to 2019, the TV advertising market grew by GEL 7.7m (11%) and amounted to GEL 75.2m. The growth was mainly caused by the money spent on TV advertising by political parties in the run up to the parliamentary elections.
- Without the amount spent on political advertising in the run up to the elections, the size of the TV advertising market was GEL 60.7m.
- An unprecedentedly large amount of GEL 14.5m was spent on political TV advertising in 2020. The highest amount spent on TV advertising was by Georgian Dream – GEL 5.1m, followed by the United National Movement (UNM) with GEL 3.1m, Lelo for Georgia – GEL 2.4m, Giorgi Vashadze – Strategy Aghmashenebeli – GEL 1.1m,1 European Georgia – GEL 1.1m and Alliance of Patriots of Georgia – GEL 1m
- The ruling party did not place any paid political advertisements at all on the high-rating opposition TV channel Mtavari Arkhi, taking most of its advertising (54%) to the pro-government TV Imedi holding. In turn, the UNM took most of its advertising (88%) to Mtavari Arkhi and did not place any paid advertising on Imedi TV.
- Imedi TV received the highest advertising revenue in 2020 - GEL 29 million, followed by Rustavi 2 - GEL 12.8 million, Mtavari Arkhi - GEL 11.1 million and Pirveli TV - GEL 6.2 million;
- Rustavi 2 TV has experienced the greatest decrease in advertising in the past years. In 2018, it was a number one company on the market with the advertising revenues amounting to GEL 30.4m. In 2020, it received as little as GEL 12.8m from advertising (58% less). The decrease in revenues coincided with the arrival of the new owner and management to the company.
- In 2020, the total revenue of private TV companies amounted to GEL 138.5m which exceeds the 2019 revenue by GEL 45.5m (49%). This is mainly caused by the growth of the advertising market in general as well as by a significant increase in “owner donations” and “other non-broadcast” income components.
- The pandemic caused by the coronavirus delivered the hardest blow to radio broadcasters. Compared to 2019, their advertising market in 2020 was reduced by another GEL 2m (23%) and their total revenue – by GEL 1.9m (20%). The most profitable among the radios (3.8 million GEL) was the holding "Fortuna".