The FINANCIAL — The revenue of television is forecast to be about USD 54,247,628 in 2013, radio – USD 4,403,190, print media – USD 3,499,320, and new media USD 728,499, according to a report of Innova.
The FINANCIAL — The revenue of television is forecast to be about USD 54,247,628 in 2013, radio – USD 4,403,190, print media – USD 3,499,320, and new media USD 728,499, according to a report of Innova. Total revenue is expected to be USD 62,878,637, 10% more compared to the previous year.
“The year 2012 was supposed to be fruitful for all media types because of the expected economic growth and elections. But statistics show that advertisement budget was reduced. Meanwhile in 2013 market and growth dynamics should stabilize," said Mamuka Andguladze, Media Analyst at Transparency International Georgia and author of the report.
According to the report by Innova, the growth rates and distribution of television, radio and print media will grow by 10 percent, while new media will grow by 15 percent.
The distribution of advertising budgets in Georgia significantly differs from in Europe. In Europe, 60 percent of the whole budget goes to television while the remaining 40 percent is distributed between radio, print media and new media. The situation is very different in Georgia as with almost 80 percent of the share, television is the clear leader on the market. Radio outlets make up about 8 percent while 6 percent of the market share belongs to magazines and newspapers, and new Media outlets are responsible for just 1% of total revenue.
About 98% of the total budget is spent on media outlets situated in Tbilisi and only 2% by regional media outlets.
“Distribution of the advertisement market may reach the European model in the near future as it is becoming more independent thanks to the recent political changes in Georgia,” Andguladze explained. “Companies no longer have an obligation from the Government in terms of advertisement distribution. Whereas priorities used to be set by the state, this is now changing. The problems that were created by the Government are already solved. The press especially is now free from political pressure.”
Print media was discredited by the President, who recommended that people not read newspapers. This was followed by the closure of private press distribution networks in Tbilisi and in the regions of Georgia. Large companies were forced to refrain from advertising in the press. As a result the press lost popularity amongst the whole of Georgian society. As experts have said, this is gradually changing. But this slow transformation alone cannot change the general situation and bring more advertisements to print media.
“First of all print media has to publish qualitative content,” said Anuki Natsvlishvili, Owner of Publishing House Flit Media, Editor-in-Chief of EGO Mag. “The appearance of many qualitative pieces in print media will return the culture of press reading in Georgia. Circulation will grow and all of this will result in more advertisements in the newspapers. Publishers should define prices reasonably and finally, media companies should care about increasing manager’s qualifications. They should understand how important it is to have advertisements in the press.”
“The current situation in this regard is very serious, and unfortunately I don’t see any improvement happening as yet,” she stated.
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