Telecommunications and broadcasting GDP grows 13.2% annually despite COVID-19

Downward broadcasting

Regarding the radio and television sector, IFT data show a significant drop in GDP in the second quarter, going from 25,000 million pesos to 18,000 million pesos in one year.

Experts in the sector assure that the fall is mainly due to the reduction in advertising revenues during the pandemic, a situation that has kept the large communication companies in suspense.

For example: between April and June 2020, Televisa’s net sales decreased 7.8% due to the reduction in advertising demand. “We depend in part on the advertising demand of consumer-focused companies and the COVID-19 pandemic has caused, and may continue to cause, advertisers to reduce, postpone or, in some cases, eliminate their advertising spend on the platform” , the company shared at the time.

TV Azteca has not been saved either. Advertising sales in the second quarter of the year fell 33%. “Although the versatility and solidity in the content offer on TV Azteca screens achieved a wide presence in Mexican homes during the health emergency, the demand for advertising space was considerably reduced,” explained Benjamin Salinas Sada, CEO of the company, in its financial report.

“We are still not sure what the sector will have after the contingency, but it will certainly be important to maintain closeness with Mexicans and ensure the satisfaction of their needs,” concludes David Pérez.