Industry revenue of »advertising agencies« in Latvia 2011-2023
Mirroring the trend in countries such as Greece and Switzerland to name a few, revenues of advertising agencies in Latvia have witnessed a decline from 386 million U.S. dollars in 2013 to 336 million U.S. dollars in 2019. This can be attributed to a decline in overall ad spends by enterprises, which has fallen from 134 million euros in 2007 to 87 million euros in 2019, owing to the high advertising rates and a general slowdown witnessed by the economy. Apart from internet advertising, spending on all other platforms such as television, newspapers and magazines has declined compared to a decade earlier.
The short to medium term doesn’t augur too well for the industry either, as the outbreak of the corona virus is expected to have a significant impact on the economy. As businesses look for ways to minimize losses, they are expected to curtail their advertising spend to a large extent. The Publicis Groupe, one of the largest advertising agencies in the world which also has an office in Riga, are on the verge of implementing a 545 million U.S. dollar cost-cutting plan.
The short to medium term doesn’t augur too well for the industry either, as the outbreak of the corona virus is expected to have a significant impact on the economy. As businesses look for ways to minimize losses, they are expected to curtail their advertising spend to a large extent. The Publicis Groupe, one of the largest advertising agencies in the world which also has an office in Riga, are on the verge of implementing a 545 million U.S. dollar cost-cutting plan.
