Every forint spent on advertising adds another six to the country’s economic performance

At the Media Hungary conference the Hungarian Advertising Association (MRSZ) and PwC Hungary revealed the findings of their study, ‘The Economic Impacts of Hungary’s Advertising Sector’. MRSZ president Zsolt Urbán and member of the presidency Péter Hivatal, plus PwC Hungary director Péter Sere spoke about the results. Mr Urbán told that in the 2014-2015 period the advertisement tax, the law on agency bonuses and setting up the National Communications Authority (NKH) all greatly affected those working in the advertising sector.

From the 28 countries analysed in the study, it is in Hungary that the least money is spent on advertisements and it is also here that the average advertisement price is the lowest. Mr Hivatal added that in 2016 every 1 forint spent on advertising adds another 6 to the country’s economic performance. In 2015 Hungary’s advertising market was worth HUF 194 billion and this sum generated HUF 1,200 billion for the country’s economy – almost 3.6 percent of the GNP.

Last year was the first when digital advertising was bigger than television commercials. Traditional media’s share in media consumption is still significant, but despite this fact 60 percent of the 2015 advertising market growth was realised by multinationals. Global players have a positive effect on both consumers and advertisers. In spite of the growth that occurred in the last few years, the size of the advertising market is still only about two thirds of the size before the economic recession. The full economic potential of advertisements can only be exploited if the right economic conditions are created for them.