The advertising revenue of Icelandic media is now at half of its all-time high in 2007. Newspapers are still the single most important advertising medium in the country, retaining almost 50 per cent in 2015. This development is described in an analysis from Statistics Iceland.
The financial collapse in Iceland in autumn 2008 brought about a severe drop in the advertising revenue of the country’s media, with a decline of almost 70 per cent from 2007 to 2009. And despite the increase since then, it is still over 50 per cent lower than the year before the financial collapse (changes in fixed 2015 prices).
Advertising revenue of the media 1996-2015 (index, 2015=100, fixed 2015 prices)
The Icelandic market exhibits a number of special traits compared with the other Nordic countries and elsewhere. A much larger share of the advertising cake falls into the hands of newspapers and radio than in most other countries, and the Web is still a relatively underdeveloped advertising medium.
Moreover, advertising spending in Iceland is lower than in the other Nordic countries as share of Gross Domestic Product and per capita.
About the data: Statistic Iceland’s comparisons to the development in the other Nordic countries are to a great degree based on Nordicom’s publication Ad Wars. Digital Challenges for Ad-Financed News Media in the Nordic Countries, which is free to download here.