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Economic dowturn brings slump in Estonia’s advertising market

Martin Aadamsoo 2009-05-05
With the economy expected to shrink by a whopping 10% this year, ad revenues in TV and other media are facing sudden downturns in Estonia.

The first quarter saw an estimated 29% reduction in TV advertising revenues, down to €5 million from last year.

While all media outlets have suffered considerebly since the recession kicked in in 2008, a relatively bright spot remains internet advertising which has only shrunk by 11% in Q1 of 2009 to €2.4 million, according to a TNS Emor report. The overall advertising revenue in Estonia for the first quarter of 2009 was €17.2 million compared with €26 million year-on-year, or 34% smaller. The largest share of ad revenue (33%) still goes to newspapers, followed by TV with 29% and Internet with 14%.

The TV ad revenue losses are not likely to significantly local film production significantly, as local broadcasters have been reluctant to invest in local product and, significantly, are not required to do so by regulations.

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