The Mexican TV ad market had a flat quarter in Q3 2013, and ended the period only marginally up year-on-year. From 9,042.7m pesos (€522.5m) in Q3 2012, free-to-air TV advertising revenue in Mexico increased just 1.5 per cent to 9,176.7m pesos (€530.2m) in Q3 2013.
The two main players in the market, Televisa and TV Azteca experienced different trends in the third quarter. Televisa's free-to-air revenue increased 5.0 per cent year-on-year from 6,120.0m pesos (€353.6m) to 6,427.0m pesos (€371.3m) in the quarter. Conversely, TV Azteca experienced a year-on-year decline for a fourth consecutive quarter. The broadcaster's net advertising revenue amounted to 2,750.0m pesos (€158.9m) down -5.9 per cent from Q2 2013.
Growth in the Mexican TV advertising market in 2012 was largely driven by quadrennial events. The general elections in July 2012, followed by the Summer Olympics, inflated ad revenue in the first three quarters of 2012. Sports-related advertising has since decreased and political media ad spend continues to fall in 2013, reducing ad revenue for Mexican broadcasters. This is reflected in TV Azteca's revenue, which has declined throughout 2013. Decreases in Mexican TV ad spend are hence merely the market returning to its set point.
Unlike Azteca, Televisa revenue grew in Q2 and Q3 2013. The first quarter was negative due to the timing of Easter this year (please see Mexico's Televisa sees TV revenues bounce back for more insight). Televisa's gains in Q2 and Q3 2013 are due to moderate increases in total ad budgets in Mexico, but also resulting from some ad budget migration from one broadcaster to the other. In 2013, Televisa increased the amount of commercialized time, selling more slots to advertisers. A higher sell-out ratio was achieved thanks to Televisa's strong ratings and high audience share. In H1 2013, twenty eight of the top thirty programs in Mexico were broadcasted by Televisa. According to Nielsen IBOPE, Televisa ranks first in Mexico with 43.4 per cent audience share in 2013 so far, compared to Azteca's 19.5 per cent.
IHS expects Mexican free-to-air TV advertising to grow 2.5 per cent across full-year 2013 and total TV advertising revenue to be 3.7 per cent higher from the previous year. As pay TV penetration continues to increase (reaching 59.0 per cent in 2013), growth in the total TV advertising market will be driven by pay TV advertising, which IHS forecasts will increase by 12.5 per cent from 2012 to 2013. TV remains the largest media category in Mexico at 59.8 per cent of all advertising revenue.