New Companies Flooding Into Advertising

The advertising sector continues to record double digit growth. In 2007, turnover in the sector grew by 20 percent to YTL 4.1 billion. The sector was boosted by 300 companies who had never advertised before joining the number of advertisers.

The advertising sector has been growing without pause for the last six years. The sector grew by 23 percent in 2006 and another 20 percent in 2007 to reach a turnover of YTL 4.1 billion. Over the last five years the share of advertising investments in GDP has increased from 0,37 percent to 0,52 percent.

In addition to an increase in investments by existing companies, new advertisers have also played a very important role in the sector’s strong performance. Over the last five years, the number of companies which have advertised has grown by 10-20 percent per annum. The largest increase was in 2006 at 42 percent. Even if it was not at the same pace, growth continued in 2007. According to statements by International Advertising Association Turkey Branch President Mehmet Ali Yalçındağ, 300 companies advertised which had never advertised before.

The Most Active Sectors
In 2007, a lot of companies from the real estate-construction, telecommunications, rapid consumer goods, foodstuffs, retailing and health sectors advertised for the first time. In the real estate-construction and health sectors in particular, high growth and the branding process were directly reflected in investments in communications. The development of the financial, insurance, electronics markets, cargo and private airline transportation sectors increased the existing advertising potential. The boom in all categories of retailing was the reason for a lot of first time advertisers, particularly in the press.

Hande Yavuz
hyavuz@capital.com.tr