UK Advertising Expected To Grow by 3.2% in 2004
Advertising expenditure is expected to rise by 3.2% during 2004 following nearly three consecutive years of decline, according to the latest research from the Advertising Association.
The figures, researched and compiled by the World Advertising Research Centre, provide further evidence that the worst advertising downturns in living memory is finally coming to an end.
All media are expected to grow over the coming year, but the highest annual percentage change of 7.0% is expected for the outdoor advertising sector, followed by 6.1% for radio and 3.9% for consumer magazines. Internet is expected to be the single fastest growing medium, although this is not be covered by the AA’s advertising forecast until next quarter.
Last year was tough for advertising expenditure, although a recovery was made in the last quarter when the sector picked up and outperformed most predictions to reach £17.2 billion, a rise of 2.5%. The AA expect this incline to continue during 2004.
The latest figures support a recent report from the Institute of Practitioners in Advertising, which suggests that a rising tide of corporate optimism could cause adspend to climb to levels not seen since the height of the dotcom boom (see Marketing Spend Expected To Grow By 3% During 2004).
Earlier this year data from Nielsen Media Research also revealed that nearly two thirds of the UK’s top one hundred advertisers increased their above-the-line spend last year as confidence returned to the market following a prolonged period of economic uncertainty and budget tightening (see Confidence Returns As Top Advertisers Increase Spend).
Advertising Association: 020 828 2771 www.adassoc.org.uk
Recent Related Stories from NewsLine Lehman Says Advertising Account Activity Is On The Up Publicis Looks Strong, Whilst Interpublic Slumps WPP Takes Bullish Stance As Pre-Tax Profits Rise
Subscribers can access ten years of media news and analysis in the Archive