Quarter 3 2012

INSIDE: Global Advertising Trends Trends by Media Type & by Category Sample of Full Report

Quarter 3 2012

 The Nielsen Company, 2012 This report, in full or in part, cannot be reproduced or transmitted in any form or by any means without written permission of Nielsen, Media Group, Global AdView. While every effort has been made in the preparation of this report to ensure accuracy of the content, Nielsen, Media Group, Global AdView, cannot accept any liability in respect of errors or omissions or for any losses or consequential losses arising from such errors or omissions. Readers will appreciate that the contents are only as up-to-date as their availability and compilation and printing schedules will allow, and are subject to change during the natural course of events.

WORLD TRENDS
Year to date

Global Advertising Trends

Year to date
Main Events Global consumer confidence increases one point from Q2 to 92 North America and Europe report the only regional consumer confidence increases, though discretionary spending patterns remain stable globally from Q2 U.S. holds presidential elections in the fourth quarter The civil war in Syria continues, with reverberations in surrounding countries ADVERTISING EXPENDITURE TREND
Million USD 60000 50000 40000 30000 20000 10000 0

2011 2012

$405 billion

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Main Facts Advertisers boost budgets in Q3 by 4.3% North America sees a significant influx of ad spend during Q3 (+10.2%) due to increased Automotive and Industry & Services ad budgets Asia Pacific also sees an improvement within its ad market during Q3, up +3.5% due to Chinas ad market recovery Advertisers within Western Europe, on the other hand, slash budgets even furtherwith a -4.8% decrease from Q3 2011 YEAR ON YEAR % CHANGE BY MONTH
6.1 4.4 2.7 4.7 3.7 2.0 2.2

3.3

3.7

0.4 Year to Jan date Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MACRO ECONOMIC TRENDS

GDP (constant prices)* + 3.3% Consumer Prices** + 4.0% Nielsen Consumer Confidence Index: 92** (+1 compared to Q2 2012) *2012 vs. 2011 forecasts **Q3 2012 survey

Copyright 2012 The Nielsen Company.

Global ad spending sees a boost in Q3, at +4.3%

After slightly slower growth seen in the first half of 2012 (+2.7%), the global advertising market saw a healthy bounce during the third quarter, rising +4.3 percent against Q3 2011. With a +3.3 percent YOY increase when comparing the first three quarters of 2012, global advertising spend totaled USD 405 billion from January to September 2012, and USD 139 billion for the third quarter. Growth was driven in part by an influx in advertising investments from North America, which saw an impressive +10.2 percent increase during the third quarter, and a +5.0 percent

increase year-to-date. Both Automotive and Industry & Services advertising (which includes political ads in the lead up to the U.S. presidential election) increased by double-digits YOY for both the year-to-date and the third quarter. The Asia Pacifics advertising market also showed signs of momentum, reporting a +2.7 percent increase for the year-to-date, and a +3.5 percent increase for Q3. Ad spending for the region was supported by the recovery of Chinas advertising market, which showed positive trends in ad spending in Q3 (+3.1%) after two consecutive quarters of decline. The embattled region of Western Europe, which reported a -2.7 percent decrease in YOY ad spending during the first half of 2012, saw deeper cuts in advertising during the third quarter

(-4.8%), as advertisers watched their budgets carefully due to continued economic instability within the region. Trends to Watch As surges in North American Automotive and Industry & Services advertising contributed notably to the positive ad spend results within the third quarter, Nielsen will watch to see if the positive advertising trends seen in the third quarter will be sustained in the fourth. Industry & Services advertising in North America in particular will likely slow during the fourth quarter in comparison to the third, due to the conclusion of the U.S. presidential elections. In the next edition of the Nielsen Global AdView Pulse, Nielsen will examine these impacts on the fourth quarter advertising market.

* based mainly on published rate cards

REGIONS -- YEAR ON YEAR % CHANGE

3.3 5.0 2.7 -3.4 6.4 18.9

Global North America Asia Pacific Europe Latin America Middle East & Africa

Copyright 2012 The Nielsen Company.

GLOBAL TREND OVERVIEW BY REGION AND COUNTRY Year on Year % Change, YTD

GLOBAL North America Canada United States of America Asia Pacific Australia China Hong Kong Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand Europe Croatia France Germany Greece Ireland Italy The Netherlands Norway Portugal Spain Switzerland Turkey United Kingdom Latin America Argentina Brazil Mexico Middle East and Africa Egypt Kuwait Lebanon Pan-Arab Media Saudi Arabia South Africa United Arab Emirates

-3.2

3.3 5.0 3.4 5.1 2.7 0.3

12.5

2.6 3.2 8.3 1.7

25.0

16.1

-3.5 -5.7 -3.4 -1.6 -0.3 -6.8 -9.9 -4.5 -6.5 -0.4 -1.0

7.4

0.5

-25.9

4.2

-16.2

6.2 6.4 8.7

17.9

-5.4

18.9 2.0

37.2

-3.8

9.2 9.2 7.1

30.1

Copyright 2012 The Nielsen Company.

Media Types With ad spending up 3.3 percent YOY from January to September 2012 and a significant bump in ad spending during Q3 of 4.3 percent, advertisers by and large chose Television advertising as the favored media through which to communicate with consumers. Television advertising rose 4.3 percent YOY for the January to September 2012 period (marking an increase from 3.1 percent for the first half of the year), due to a considerable Q3 increase in spending within North America (+13.6%). With a 61.8 percent share of spend of all media types measured within this report, Televisions increase further cemented its standing as the preferred medium of communication for advertisers. In fact, when looking at all media types measured within this report, all media types saw increases in advertising spend year-to-date, with the sole exception of Magazines. Brands continued to invest less in this medium, with a -1.3 percent decrease in YOY spending from January to September 2012, and a deeper -1.8 percent decrease when looking at just the third quarter. Though the Asia Pacific sustained its investments (+5.3%), supported by key markets like China (+10.6%) and Japan (+3.8%), advertisers in both North America (-3.2%) and Europe (-6.8%) decreased budgets on Magazines.

MEDIA -- % CHANGE YEAR TO DATE

Television

4.3%

6.5%
Radio

4.6%
Outdoor

0.8%

Newspapers

-1.3%
Magazines

7.7%
Internet

9.2%
Cinema

Copyright 2012 The Nielsen Company.

Media Types - continued Display Internet advertising, though measured in a smaller subset of countries, saw a +7.7 percent YOY increase in advertising from January to September 2012, due to budget increases from Financial, FMCG, and Telecommunications advertisers. Telecommunications companies, which saw the greatest percentage YOY increase in advertising spend for the year-to-date, increased their display Internet ad investments by over 25 percent. Even in the embattled advertising market of Western Europe, display Internet advertising rose +9.0 percent YOYthe sole media type to show ad spend growth in the region.

MEDIA -- % SHARE OF SPEND -- YEAR TO DATE

0.3

2.7 7.9

19.7

61.8 5.2 2.6

Television

Radio Magazines

Outdoor Internet

Newspapers Cinema

MEDIA BY REGION YEAR-ON-YEAR % CHANGE, YEAR TO DATE

4.6 4.0 5.4 6.9 9.0 0.5 -3.2 -1.1 -0.9 -6.8-6.8 -3.0 12.3 6.4 2.7 1.5

45.5

5.3 29.1 10.6 6.0 3.5 2.5 6.2 19.4 28.0 26.2 22.8

-1.5

2.5 -0.5

-15.9

Cinema Newspapers Outdoor

Internet Radio

Magazines Television

Copyright 2012 The Nielsen Company.

10

Macro Sectors While Telecommunications advertising continued to lead the top of the percentage rankings in terms of YOY advertising spend growth for the period January to September 2012 (+6.6%), considerable gains were also seen in the macro sectors Media (+6.1%) and FMCG (+6.0%). Within the macro sector Media, the subcategory Broadcasters saw a notable growth of 8.3 percent for the year-to-date. This may be in part due to an increase in in-house advertising (broadcasters advertising on their own channels) as they fill spots not sold to paying advertisers. FMCG advertising, which saw a +9.6 percent increase during Q3 driven largely by increases in Food and Drink advertising, benefited from a 6.0 percent increase in advertising budgets for the year-to-date.

SECTORS -- % SHARE OF SPEND -- YEAR TO DATE

5.7 7.5 11.2

8.0 3.3 5.2 4.9

9.9

11.7 5.3 25.1

Automotive Entertainment Industry & Serv.

Clothing & Access. Financial Media

Distribution FMCG Telecom.

Durables Healthcare

SECTORS -- % CHANGE YEAR TO DATE TELECOMMUNICATIONS companies continue to increase ad spend by 6.6% year-to-date Though considerable increases are also seen in Media and FMCG advertising TELECOMMUNICATIONS MEDIA AUTOMOTIVE FMCG ENTERTAINMENT DISTRIBUTION CHANNELS FINANCIAL CLOTHING & ACCESSORIES INDUSTRY & SERVICES HEALTHCARE DURABLES -0.4 -3.5 2.4 0.6 4.4 4.2 3.9 6.6 6.1 6.0 6.0

Copyright 2012 The Nielsen Company.

11

CATEGORIES RANK AND % SHARE OF SPEND, YTD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Healthcare Cosmetics & Toiletries Automotive Food Media & Publishing Entertainment Drink Telecommunications Financial Distribution Channels Institutions Industry, Agriculture & Property Clothing & Accessories Transport & Tourism Furnishings & Decoration Leisure Products Housekeeping Products Business Services Information Technology Domestic Appliances Energy Tobacco 9.9 8.9 8.0 7.7 7.5 6.4 6.1 5.7 5.3 5.2 4.9 3.5 3.3 2.8 2.6 2.5 2.3 2.3 1.3 1.1 0.6 0.1

TOP 20 GLOBAL SPENDERS, YTD 1 2 3 4 5 6 7 8 9 10 PROCTER & GAMBLE UNILEVER LOREAL FORD MOTOR GENERAL MOTORS TOYOTA MOTOR VOLKSWAGEN GROUP MCDONALDS AT&T NESTLE 11 12 13 14 15 16 17 18 19 20 HONDA VERIZON COMMUNICATIONS NISSAN RECKITT BENCKISER JOHNSON & JOHNSON TIME WARNER CHRYSLER THE COCA COLA COMPANY PEPSICO UNIVERSAL

Copyright 2012 The Nielsen Company.

12

METHODOLOGY NOTES

Methodology
The information included in this report has been compiled, harmonized and produced by Nielsen Media Group, Global AdView. The Nielsen Global AdView Pulse reports on advertising expenditure for Argentina, Australia, Brazil, Canada, China, Croatia, Egypt, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Italy, Japan, Kuwait, Lebanon, Malaysia, Mexico, The Netherlands, New Zealand, Norway, Pan-Arab Media, Philippines, Portugal, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the United States of America. Pan-Arab Media refers to the media outlets in the Middle East that have significant viewership, readership or listenership in two or more markets and are not localized to only one market in the region. They do not represent a duplication with the coverage of each country and gather a significant amount of the advertising in the region. * Provided by Nielsen CC Data ** AGB Nielsen in association with Ipsos *** In association with Media Focus The Media Group within Nielsen, is the data source for the following countries: Australia Canada China* Croatia** Germany Indonesia Ireland (Republic of) Italy Malaysia The Netherlands New Zealand Norway Philippines Singapore South Africa South Korea Switzerland*** Taiwan Thailand Turkey United Kingdom United States of America

Copyright 2012 The Nielsen Company.

14

Methodology
The data sources for the other countries included in the report are: Argentina: IBOPE Brazil: Egypt: France: Greece: Japan: Kuwait: Lebanon: Mexico: IBOPE PARC (Pan Arab Research Centre) Yacast Media Services Nihon Daily Tsushinsha PARC (Pan Arab Research Centre) PARC (Pan Arab Research Centre) IBOPE the Middle East, Africa and North America about their confidence levels and economic outlook. This Nielsen Consumer Confidence Index is developed based on consumers confidence in the job market, status of their personal finances and readiness to spend. The sample has quotas based on age and sex for each country based on their Internet users, is weighted to be representative of Internet consumers, and has a maximum margin of error of +0.6%. Figures are expressed in Million USD and are gross except for Australia, Ireland, and the UK which are estimated net at source, and France, Germany, Greece, Italy, the Netherlands, Spain, Taiwan, and Turkeyto which Nielsen Global AdView estimated weighting factors are applied. USA and Spanish figures are based on apples-to-apples comparisons to the previous year, both in terms of coverage and methodology, in order to give a more accurate representation of the trends. The source for the exchange rates is OANDA (website: www.oanda.com ) and the rate applied to all figures is the 2011 yearly average. In order to reflect the most accurate picture for media type trends and macro-sector trends, the methodology used for each may differ. Adjustments and estimates necessary to represent the media type trends accurately may not be suitable for the macro-sector trends. In some cases a direct comparison is therefore not possible. MAP OF THE REPORT World Trend: this section includes all territories and relates to the following media types : Television, Newspapers, Magazines, Radio, Internet, Outdoor, and Cinema. Regions: this section includes spend on Television, Newspapers, Magazines, Radio, Internet, Outdoor, and Cinema. Each region includes the following countries: North America: Canada, United States of America. Asia Pacific: Australia, China, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand. Europe: Croatia, France, Germany, Greece, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Switzerland, Turkey, United Kingdom. Latin America: Argentina, Brazil, Mexico. Middle East and Africa: Egypt, Kuwait, Lebanon, Pan-Arab Media, Saudi Arabia, South Africa, United Arab Emirates.
Note: Pan-Arab Media refers to the media titles in the Middle East that have significant viewership, readership or listenership in two or more markets and are not localized to only one market in the region. They do not represent a duplication with the coverage of each country and gather a significant amount of the advertising in the region.

Hong Kong: admanGo

Pan-Arab Media: PARC (Pan Arab Research Centre) Portugal: Mediamonitor Saudi Arabia: PARC (Pan Arab Research Centre) Spain: UAE: Arce Media PARC (Pan Arab Research Centre)

The source for the macro-economic indicators is IMF (International Monetary Fund) World Economic Outlook October 2012 (website: www.imf.org). The Nielsen Global Survey (source for the Nielsen Global Survey of Consumer Confidence and Spending Intentions), was conducted between August 10 and September 7, 2012 and polled more than 29,000 consumers in 58 countries throughout Asia Pacific, Europe, Latin America,

Copyright 2012 The Nielsen Company.

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 Country breakdown refers to all major media types available in the country (Television, Newspapers, Magazines, Radio, Outdoor, Cinema, Internet). Macro-sectors include the following Categories: Automotive: Automotive Industry & Services: Business Services, Property, Institutions, Power & Water Clothing & Accessories: Clothing & Accessories FMCG: Cosmetics & Toiletries, Drinks, Food, Housekeeping Products, Tobacco Distribution Channels: Distribution Channels (including also: Mail Order, Multiple Product Retailers, On-line shopping & generic on-line services, Corporate/Image and sponsorship Distribution Channels) Durables: Domestic Appliances, Furnishings & Decoration, Information Technology Entertainment: Entertainment, Leisure products, Transport & Tourism Financial: Financial Healthcare: Healthcare Media: Media & Publishing Telecommunications: Telecommunications

Macro-sectors and Categories are harmonized in order to allow consistency of comparison between regions and countries. They may therefore differ to how the local sectors and categories are built. Top 20 Global Spenders: this ranking has been compiled to show the top 20 spenders at corporate/holding company level. Using each of the businesses comprising these international corporations at a local level the cumulative total has been reported. The top 20 global spenders rank is based on the Nielsen countries included in this review plus Spain, Portugal and Hong Kong. For the remaining countries the advertiser detail is not available in a way that can be included in the global ranking.

Copyright 2012 The Nielsen Company.

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MEDIA COVERAGE OVERVIEW This table presents an overview of the media types covered in each territory.

TV North America Canada USA Asia Pacific Australia China Hong Kong Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand Europe Croatia France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Switzerland Turkey UK

Newsp.

Magaz.

Radio

Outdoor

Cinema

Internet

Copyright 2012 The Nielsen Company.

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MEDIA COVERAGE OVERVIEW This table presents an overview of the media types covered in each territory.

TV Latin America Argentina Brazil Mexico Middle East and Africa Egypt Kuwait Lebanon Pan-Arab Media Saudi Arabia South Africa UAE

Newsp.

Magaz.

Radio

Outdoor

Cinema

Internet

Copyright 2012 The Nielsen Company.

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Quarter 2011 Quarter 34 2012

SNEAK PREVIEW
Get a taste of the regional and country insights from the full version of Nielsen Global AdView Pulse

North America
Region Overview
Highlights North American ad market sees a significant YOY boost during Q3, at 10.2% TV ad investments increase 13.6% Automotive and Industry & Services advertising (namely political ads) contribute to Q3 growth The North American advertising market saw a significant boost during the third quarter, with a +10.2 percent increase in advertising budgets during Q3 2012 when comparing Q3 2011. Growth from both Canada (+14.6% YOY) and the U.S. (+9.9% YOY) fueled the increase, as Television, the dominant media type at a 64.3 percent share of spend, saw an impressive 13.6 percent increase in spending YOY during Q3. Double-digit increases in Automotive advertising contributed to the positive growth, with a +21.9 percent increase in Automotive spending reported for the third quarter. Industry & Services advertising (which contains the subcategory Politics & Government advertising) saw a substantial growth of 21.6 percent, which resulted from a significant increase in political ads in the lead-up to the U.S. presidential election in November. MARKET -- ADVERTISING EXPENDITURE TREND

Million USD 14000 12000 10000 8000 6000 4000 2000 0

2011 2012

$89.3 billion

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

COUNTRIES -- % SHARE OF SPEND -- YTD

7.0

Canada USA

93.0

Full report includes: Regional & Country Trends by Month, Quarter, Media Type, Sector & Category Top Advertisers by Country and Globally

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Argentina
COUNTRY FACTS

Country Overview
CONSUMER CONFIDENCE INSIGHTS

POPULATION 41,028,000 GDP in BILLIONS 471 Argentine Pesos GDP PER CAPITA 11,491 Argentine Pesos INFLATION 9.9 percent CURRENCY 1 Argentine Peso = 0.2428 USD

ARGENTINA

75

-11 from Q2

Source: Nielsen Consumer Confidence Index, Q3 2012

MACRO ECONOMIC TRENDS GDP (at constant prices) vs. Inflation (consumer prices) year-on-year % change 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2009

GDP CP

2010

2011

2012

2013

2014

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Argentina
Highlights

Country Overview
ADVERTISING EXPENDITURE TREND Economists suggest that, despite the fact Argentinas economy grew by approximately 0.4% in Q3, the country may fall back into recession in 2013 Argentinas ad market shows the largest percentage increase in ad spending YTD during Q3, at +20.3% Though economists estimate that Argentina emerged from its recession in the third quarter, growing by 0.4 percent, some argue that the country may fall back into recession in 2013. According to the International Business Times, the country has not yet fully recovered from its economic problems and still suffers from hyperinflation. Despite its economic issues, the Argentinian ad market showed its best performance of the year during the third quarterwith an expansion of 20.3 percent YOY. All macro sectors showed double-digit increases in advertising spending, with the lone exception of Durables (declining -8.2% in Q3).

1400 1200 1000 800 600 400 200 0

2011 2012

$9.9 billion

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

METHODOLOGY
Media covered: Television, Newspapers, Magazines, Radio Figures: gross. Due to local coding methodology for Retail, it is not possible to attribute the local spend to the global Distribution Channels category. The trend for this sector is therefore not reported separately.

NOTES
Data source: IBOPE No change in coverage or methodology for this quarter

Advertising Year-on-year % change by Media

TV MG NP RD TOT TV MG NP RD TOT TV MG NP RD TOT

39.1

38.9

41.1 27.7

38.9 26.7

31.7

37.6

32.8

29.6

0.6 -3.4

6.9 -0.4

-8.5

2009 vs 2008

2010 vs 2009

2011 vs 2010

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Quarter 2011 Quarter 34 2012

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