The Latvian Advertising Association recently released ad spend data for the first half of 2023. Total investment grew 4.6% year-over-year to 41.5 million EUR. However, Latvia is behind global shifts towards digital, with TV maintaining strength while press and out-of-home underperform.
Overview of H1 2023 Latvian Ad Industry Data
- Total ad spend increased 4.6% y/y driven by rises in TV, radio and cinema
- TV grew 7.1% to capture 38.9% share, remaining the top category
- Internet spend was flat at -1.4% but share grew to 25.2% from 22.4% in 2021
- Press declined significantly by -17.1%, impacted by reduced Russian-language and regional papers
- Cinema ads jumped 121% off a low base
- Out-of-home increased slightly by 4.3%
- Radio gained 11.6% share
The Local Picture Misses Global Internet Dominance
The report only covers Latvian media, excluding international digital platforms. When estimated spend on Google, Meta, YouTube and more is included, the internet likely represents over 50% of total ad investment.
This international internet spend rivals the entire local digital market. Factoring it in would make online the top category overtaking TV.
Differences from Global Market Patterns Emerge
There are some deviations in Latvia compared to broader global advertising trends:
- TV maintained strength rather than losing share to digital video as seen worldwide
- Press decline is more dramatic than in other markets
- Radio growing, while declining elsewhere
- Out-of-home slow growth compared to global boom
Drivers may include:
- High TV viewership and pricing during turmoil in Russian-language channels
- Less advanced digital news monetization benefiting print
- Strong local radio culture compensating for global audio shifts
- Lower DOOH infrastructure compared to other markets
As measurement and targeting improve, Latvia is likely to align more closely with global patterns. But increased international internet investment follows the worldwide shift towards platforms.
For a full picture, Latvian marketers must consider both local and global ad spend. While still developing in areas like digital news and DOOH, Latvia is following global trends in platforms taking share. As local media embraces digital, the market can close gaps with the worldwide shifts to online.