WORLD PRESS TRENDS - World Association of Newspapers

TURKEY
ADVERTISING EXPENDITURE & ECONOMIC DATA
Main economic indicators 1994-2000
1995 1996 1997 1998 1999 2000 2001
1 US$= 625,219 Turkish Lira at 2001 rate
Gross Domestic Product (TL trillion)
at current prices 7,762 14,772 28,836 52,225 77,415 124,982 178,699
% change 100.7 90.3 95.2 81.1 48.2 61.4 43.0
at 2001 prices 122,609 129,383 135,983 133,384 185,167 192,980 178,699
% change 6.7 5.5 5.1 -1.9 38.8 4.2 -7.4
Gross Domestic Product per capita (TL million)
at current prices 128.1 240.1 461.7 823.9 1,203.2 1,854.9 2,604.6
at 2001 prices 2,022.9 2,102.8 2,177.1 2,104.2 2,878.0 2,864.1 2,604.6
Population
Millions 60.6 61.5 62.5 63.4 64.3 67.4 68.6
Consumer Price Index
2001=100 6.3 11.4 21.2 39.2 41.8 64.8 100.0
%change 88.1 80.3 85.7 84.6 64.9 54.9 54.4
Ad.spend as a % of GDP
0.38 0.40 0.51 0.46 0.51 0.54 0.38
Advertising Expenditure Growth (%)
at current prices 106.8 102.6 146.8 65.1 63.5 69.7 0.9
at 2001 prices 9.9 12.3 32.9 -10.6 -0.8 9.6 -34.7
Source: IFS, ZenithOptimedia
Advertising expenditure
(TL billion, in current prices)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Newspapers 11,800 22,910 52,765 95,600 140,000 229,500 252,471 476,086 616,690 774,792 902,289
Magazines 1,300 2,490 5,735 10,400 25,000 42,300 30,640 50,114 74,428 95,623 121,245
Television 11,500 25,030 60,000 98,500 166,000 284,500 284,336
Radio 1,700 3,160 8,000 15,000 25,500 47,400 45,347
Cinema 600 1,390 9,500 3,500 5,500 8,200 6,128
Outdoor 2,300 4,170 10,000 18,000 32,000 56,900 55,151
Internet 0 0 0 0 0 0 613
Total 29,200 59,150 146,000 241,000 394,000 668,800 674,686 1,289,107 1,696,535 2,123,322 2,526,974
Source: 1995-2001 Advertising Agencies Association, 2002-2005 ZenithOptimedia
Notes: Includes agency commission and classified, excludes production costs, after discounts
Research
Circulation is audited by: Basin Ilan Kurumu
Readership is measured by: BIAK (Taylor Nelson Sofres PIAR)
Methodology: Daily data collection through face-to-face
interviews with a representative sample of 36,000 people in 19
cities each year.
Taxes
VAT on: sales 1% advertising 18% newsprint 8%
plant 0 (standard VAT rate 18%)
There is a 0.6% stamp tax on every written contract.
All companies now pay 33% tax on profits, regardless of
ownership.
Each municipality sets its own tax on bill-posting. There are
more than 7,800 municipalities.
If a tax incentive is granted for an investment project, the total
amount spent can be deducted from that year’s profit. A rate of
10.7% is applicable for the deducted amount. If the project cost
is more than the related year’s profit, the deduction can be taken
from the next year’s profit.
Subsidies
If a newspaper company buys new equipment which is at least
50% domestically produced, the 17% VAT is waived.
Discounts
on: post 0 rail 0 telephone 0 telegraph 0 telex 0
Ownership
Does any law exist governing publishing-house ownership, or the
registration of shares in newspaper-publishing companies No
specific law governing publishing ownership exists in Turkey.
All Turkish corporate laws apply to publishing houses, though.
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority of
shares, of domestic daily newspapers As a rule there are no
restricting laws. In fact, incentives are given for foreign
investment in any sector, with the exception of periodical
publishing. According to Article 7/5 or the Press Law, non-
Turkish investors must have permission from the Ministry of
Interior Affairs to own or publish a periodical in Turkey.
Is there any law prohibiting daily newspaper or periodical publishers
from operating radio or television stations in the same locality
Newspaper publishers can own up to 20% of radio and TV
channels.
So as to guarantee disclosure and transparency in the capital structure
and to avert silent partnerships, is there a law or rule making it possible
to determine who actually owns a publishing company According
to the Turkish Commercial Code, ownership of registered shares
should be announced, but the ownership of bearer shares may
be kept secret. The law has no specific provision for publishing
companies.
Is there an antitrust law limiting concentration in the daily press
No
Is further regulation of media concentration expected Regulation
of media concentration is being discussed in political circles,
but nothing has been put forward as legislation.
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 283