a third of companies in the sector have less than a year of life – CVBJ




Updated Thursday November 18, 2021 – 01:35 AM

Senior entrepreneurs who start their own businesses and the digital boost experienced during the pandemic are helping to bring the number of newly created businesses to 35%, or 14,304.

Marquee with advertising in the Gran Va de Madrid.EM

Advertising, an activity heavily dependent on the country’s economic situation, is gaining momentum to cope with a post-pandemic return. This economic activity includes 42,971 companies in Spain, according to 2020 data, which is 5.2% more than the previous year. However, more than the total number, the characteristics of these companies are striking: more than a third (35% and 14,304 companies) have only one year of life.

The fact that 35% of companies are newly created leads to think of a “young sector, renewed with a great capacity for growth and reinvention”, as indicated in the Observatory of Advertising in Spain 2021, prepared by the Spanish Association advertisers (aea) and published this Wednesday. “Among the causes, we can say that there are a lot of senior profiles who have started their business and there is also a lot of digital business creation“They explain to AEA EL MUNDO. In 2018, companies with less than one year of life accounted for 27%, 30% in 2019 and, in the analyzed year of the pandemic, this share rose to 35%.

If we look back and, despite the chain of the financial crisis with that of the coronavirus, we see that over the past 10 years this sector has experienced a 42.8% increase in business start-ups.

Covid has undoubtedly had an impact in the field of advertising: turnover fell 22.9% in 2020 compared to 2019, “but despite this it is higher than the annual average of the general index of the service sector. ”, So that the advertising activity would have suffered less than other areas such as telecommunications, information and communications, retail trade or transport and storage.

Female micro-enterprise

In the absence of definitive data on the volume of business during the year 2020, still unknown, the last figure updated by the INE will be that of 2019, which calculates 19,191 million euros.

This global economic activity is launched thanks to the real investment in the media, the advertising of brands and institutions, which amounted in 2020 to 10,793.6 million euros, after a decrease of -17.9% by compared to 13,146 million euros in 2019.

“Analysis of a decade of investment reveals the delicate situation of the advertising sector. After ten years, advertising investments are well below the trend line and are at figures close to the worst times experienced in 2012 and 2013 ”, collects this report from aea. Specifically, the data for 2020 is the lowest for the sector since 2013, when it touched only 10,461 million euros.

The vast majority of advertising agencies are SMEs or even micro-enterprises since 99% of them have less than 20 employees. Women also retain their predominance in the sector, with a presence of 58.6% against 41.1% of men.

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