30 November -1
What effect does 2006-2007 have on watch advertising?
2006 turned out to be a hard year for watch manufacturers. What effect does it have on watch advertising?
It was to be expected that due to some difficulties the general advertising volume insignificantly reduced last year. According to TNS Gallup AdFact, in 2005 it was spent $33 053 481 and in 2006 $32 371 197 accordingly on watches advertising.
Table 1 displays the fact that many brands reduced the advertising volume last year. In figures it is displayed as follows: 30 brands ceased any advertising activities, 73- decreased their advertising volume and 32-increased.
One shouldn’t be mislead by great advertising volumes of “Rolex” and “Swatch”. “Rolex” has it due to a lot of video commercials on Eurosport during international competitions, and it does not have any connections with Russia. “Swatch” also used video commercials in Moscow movie theatres.
Not taking into consideration these two brands, the general quantity of airs of watch commercials on the Federal level reduced more than twice: 5547 airs in 2005 compared to 2579 in 2006. This reduction is generally explained by ceasing of “Romanson” outdoor advertising (more than 1800 airs last year).
Of course, not all brands reduced their advertising volume. “Richemont” and “Mercury” brands increased their activity and budgets. Also there were several successful start-ups: “Haas&Cie”, “Oris”, “Sector”.
Press remains the major advertising distributor for watches. 90% out of $ 32 million of the total budget goes to papers and magazines. Table 2 shows the list of brands arranged according to press releases.
It is quite clear that the quantity of releases is not always proportional to investments to advertising. Magazines differ so as issue arrangements. “Breguet” is the leader in advertising releases, while “Breitling” is number one in he list of investment volume.
Table 1
Dynamics of watch brands advertising activity*
*Sourse - TNS Gallup AdFact
Table 2
Shows advertising releases in Moscow mass media : TV, radio, press, outdoor advertising, movies*
*Watch brands advertising activities in mass media in 2006 (arranged according to press releases)*
Table 3
Advertising budgets distribution for several brands in 2006*
*Sourse - TNS Gallup AdFact
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