Spain Audiovisual Hub: Advertising film consolidates its growth, increases jobs and creates industrial fabric.

By November 18, 2022 News No Comments

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  • The estimated turnover of the Advertising Film Production sector in Spain in 2021 reaches 526 million euros, growing by 36% in the last two years.
  • In 2021, a total of 267 million euros were invested in Advertising Production in Spain. This is 59% more than in 2019.
  • The number of jobs created by the sector during 2021 grows by 29% from 2019

The Association of Spanish Advertising Film Producers (APCP) today presented the fifth edition of the ‘Study on the Economic Impact of Advertising Production in Spain’.

The report has been prepared by SCOPEN (a communications and marketing industry consultancy) and offers a current and real analysis of the Spanish advertising film production market in economic terms.

The estimated turnover of the Advertising Film Production sector in Spain in 2021 is around 526 million euros. This is the highest figure since this study began in 2015 and represents an increase of 36% in the last two years. The average turnover per production company is just over €4 million. This amount, which is fairly stable over time, represents an upturn of 6% compared to 2019.

Foreign clients, in line with the data we have been seeing since 2016, account for 39% of revenue, with 207 million euros in 2021. On the other hand, revenue coming from Spanish clients (accounting for 61% of revenue – €319m) has grown in recent years (in 2017 it accounted for only 37% of revenue).

European companies are the main ‘foreign client’ of the productions made in Spain and 7 out of every 10 euros of ‘foreign clients’ come from Europe (followed by the USA/Canada, Latin America, Asia and lastly Africa/Oceania). The volume of turnover generated by European companies now amounts to 144 million euros, a figure that has grown by 13% in the last two years. 96% of respondents believe that having tax incentives would considerably increase the number of foreign productions in Spain.

The days of filming in Spain (whether for Spanish or foreign clients) in 2021 were mostly in the regions of Catalonia (43%) and Madrid (39%). However, in terms of investment, the Community of Madrid is slightly ahead of Catalonia (42.5% vs. 42.2%).

The investment generated by Advertising Production in Spain, in 2021, is 267 million euros, which represents a growth of 59% compared to 2019. Of this investment, the item with the largest budget is the Rental of materials (26%), followed by Image and voice/music rights (13%) and Post-production (13%).

The total figure for Personnel Expenses represents 53% of the total turnover and amounts to just over 272 million euros, an increase of 61% compared to the previous edition. Employees (including direct and indirect jobs) accounted for 75% of this expenditure (just over 205 million euros). On the other hand, the self-employed account for 25% of total personnel expenditure (67 million euros).

Óscar López, Studies & Research Director at SCOPEN tells us that “in addition to the general increase in turnover in the sector, in 2021, we can also observe the recovery in the number of recruitments after the crisis of 2020 caused by COVID-19”. The number of jobs created during 2021 is 103,392, with a growth of 29% over the last two years. The ’employed’ contracts have a higher weight (66%), than the ‘self-employed’ jobs (remaining 34%).

In terms of turnover variation, production companies report an average increase of 10% in 2022 compared to 2020, with a 7% increase in the number of productions.

The report also includes data on equality policies in Spanish production companies and, in 2022, 51% of the workforce (permanent+temporary) will be women and 49% men, although among management positions the majority percentage will be men (64%).

Following this analysis, Horcajuelo insisted that “This new report confirms that advertising film shoots are recovering and, moreover, it is a sector that generates jobs. For this reason, it is vitally important that we continue to work together, all of us who participate in this complex sector and, above all, that we have the support of the public administrations”.

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