‘Televisa prepare for a fall in advertising revenue due to a reduction in advertisers’ budgets following the victory of Donald Trump in the US presidential elections.’
Salvi Folch, CFO of the Mexican media giant, told the Morgan Stanley TMT conference in Barcelona that the company prepares for a drop in advertiser spending this year, according to Bloomberg.
Televisa sells advertising in advance, without possibility of reversing or the operation. Given the new landscape, the company could even change its traditional marketing model. “Now, most Mexican companies are revising their budgets and commit without flexibility can be a challenge,” Folch acknowledged.
The Executive said the uncertainty – after Trump’s victory – means “there is less visibility for the coming year and Televisa has already heard from advertising agencies that customers can reduce the pace of negotiations for the rest of 2016.”
“We are extremely optimistic about the Mexican economy, but this will have an impact and is impacting our clients; it Is affecting our decisions,” he added.