Advertising Sector Growth in Spain
The advertising sector in Spain experienced significant growth in 2023, with an 8.5% increase in business volume, reaching 19,849 million euros. This growth is attributed to the expansion of the ‘Advertising and Market Research’ sector, which saw an increase of 1,550 million euros.
Investment Contribution to GDP
The aggregate investment contribution of advertising activity to the Gross Domestic Product (GDP) stands at 1.21%, a decrease of six tenths compared to the previous year. This decline is based on the latest update from the INE – EPA.
Number of Companies and Employment
According to the National Institute of Statistics (INE), there are 45,641 companies dedicated to advertising, a 5.1% decrease from the previous year. Despite this decline, the Advertising and Market Research sector increased its percentage in the Spanish business fabric by one tenth, reaching 1.6%.
Regarding employment, seven out of ten advertising companies in Spain do not have employees, and 99.2% have less than 20 employees. The growth of natural persons as a legal condition of companies is consolidated, assuming 61.5% compared to 58.07% the previous year.
Regional Distribution of Advertising Companies
Madrid and Catalonia lead the market, concentrating the majority of advertising companies with 12,367 and 10,730, respectively. The five communities with the largest advertising network are Madrid, Catalonia, Andalusia, the Valencian Community, and the Canary Islands.
Advertising and Market Studies
The ‘Advertising and Market Studies’ sector brings together 1.6% of the business fabric in relation to the Spanish business volume, ahead of significant sectors such as ‘Creative, artistic and entertainment activities’ and ‘Sports activities, recreational and entertainment’.
Platforms and Advertising
A report by IMOP Insights analyzed the relationship between SVOD platforms and advertising. The study found that 86% of Internet users’ homes have television connected to the Internet, and the same percentage has access to SVOD. On average, 3.3 video platforms are accessed.
Free-to-air television has the greatest daily and weekly monitoring, even among those who have access to SVOD. Users aged 25 to 34 consume the most SVOD and are the most reluctant to advertising plans.
Artificial Intelligence in Advertising
The arrival of artificial intelligence (AI) in the advertising sector has sparked concerns about balance and transparency. Experts emphasize the need for an ethical criterion to apply while there is no global progress in self-regulation and definition of common limits.
The consumer is also on the learning curve with AI, and trust will be built with brands that are transparent and responsible in their commercial policies.