Urbán said the ad market is starting to recover, but the modified ad tax with its uniform 5.3% rate almost completely counterbalances sectoral growth.

A favourable regulatory environment is needed for the advertising industry to efficiently fulfil its role as an engine of growth, he added. In 2015 online advertising expanded by 14.4% in value to reach 54.1 billion forints evenly distributed between domestic and foreign advertisers.

Online advertising is now the biggest section of the market, while television ad spending took second place with 51.6 billion after 3.15% annual growth.

Radio advertising was down 3.08% at just over 9 billion forints, advertising in cinemas jumped by 20% but total value was still just 1.6 billion and press advertising was down just below an annual 7% at 32.23 billion.

In 2014 state advertising was responsible for 20% of all spending but in 2015 state expenditure diminished by 13%, MRSZ said.

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