UK Adspend Expected To Grow By 4.4% Next Year
UK advertising expenditure is expected to rise by 4.4% next year with online media owners expected to be the main beneficiaries.
The latest forecasts from the Advertising Association predict continued growth during 2005 after the industry saw total spend accelerate during the first half of this year, due to increased spend on brand promotions and better than expected profits (see UK Adspend Shows Solid Growth In Second Quarter).
All media sectors are forecast to experience real growth, but internet advertising is expected to be the single fastest growth medium with expenditure growing by an impressive 30.3% next year. Marketers continue to put their faith in the internet, which is emerging as the most effective medium for acquiring new customers and offering efficiency (see Media Budgets Expected To Increase Again In 2005).
Outdoor advertising will also enjoy a bumper year with adspend expected to rise by a solid 6.9% during 2005 with online retail, property and household brands continuing to invest heavily in the sector. Cinema will bounce back strongly with 8.2% growth and radio will continue to increase its share of media budgets with an increase of 4.1%.
The forecast, which was researched and complied by the World Advertising Research Centre, expects press display advertising to record 3.8% growth next year, ahead of classifieds with 3.2%. National newspapers will also outperform regionals with an solid increase of 3.8%.
Conditions look set to be tougher for television advertising, which is only expected to see expenditure rise by 1.9% next year, the lowest figure of any media. However, the UK’s commercial broadcasters are believed to be on the brink of forming an joint initiative to sell the medium to advertisers.
| Annual Change In Advertising Expenditure By Medium | |
| 2005 on 2004, | |
| % change at | |
| constant prices1 | |
| National newspapers | 3.8 |
| Regional newspapers | 3.7 |
| Consumer magazines | 3.5 |
| Business magazines | 2.3 |
| Total press | 3.5 |
| – of which display | 3.8 |
| – of which classified | 3.2 |
| Television | 1.9 |
| Radio | 4.1 |
| Outdoor | 6.9 |
| Cinema | 8.2 |
| Internet | 30.3 |
| Direct Mail | 3.6 |
| Total excl. internet | 3.4 |
| Total incl. Internet | 4.4 |
| Source: AA/WARC | |
The latest forecasts add weight to the findings of the June Bellwether report from the Institute of Practitioners in Advertising, which shows that marketing budgets for the second quarter were revised upwards as confidence gradually returned to the industry (see Market Recovery Continuing For UK Advertisers).
Advertising Association: 020 7828 2771 www.adassoc.org.uk
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