UK Adspend Forecast To Rise By 4.2% In 2005

UK advertising expenditure is expected to rise by 4.2% in 2005, with the Internet the fastest growing medium, according to revised predictions made by the Advertising Association (AA) in their Advertising Forecast.

All media is forecast to increase over the next year, with the Internet leading the way and predicted to rise by an impressive 38.1%.

Other mediums expected to do well in 2005 are outdoor advertising, predicted to increase by 6.2%; cinema adspend, forecast to rise by 4.8% and radio advertising expenditure, which could rise by 4.5%.

The overall estimated total for expected adspend in the UK for 2005 is 4.2%, this is slightly more conservative than independent media communications specialist, Carat, who yesterday forecast the increase to be 4.6%.

The AA justifies its forecast with data for the first three quarters of 2004, pointing to an annual increase of 5.0% and predicting that growth will continue in 2005, albeit at the slightly slower pace of 4.2% year on year.

Advertising expenditure in 2005 is forecast to grow by 4.46%, based on a consensus of recent forecasts compiled by MediaTel Insight. While this figure is not as strong as the 5.32% forecast for 2004, the outlook for the forthcoming year remains solid.

Advertising Association: 020 7828 2771 www.adassoc.org.uk

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