UK Adspend Exceeds Expectations For 2004

Advertising expenditure in the UK rose by 5.4% to £18.4 billion in 2004, representing the biggest increase for four years, according to the latest figures released by the Advertising Association (AA), researched and complied on its behalf by the World Advertising Research Centre (WARC).

Press advertising accounted for the largest share of total adspend in 2004 with 47.8%, while television was the second largest medium at 25.8%. Direct mail took a 13.5% share during the year, followed by outdoor at 5.4%, radio with 3.3%, internet at 3.2% and cinema with 1.0%.

Within the press sector, advertising expenditure in regional newspapers and directories grew by 6.0% and 5.5% respectively in current prices and by 4.6% and 4.1% in real terms. The other press sectors all returned to growth in both current prices and real terms following falls in adspend in 2003.

Outdoor and cinema advertising both enjoyed strong growth in the course of 2004. Despite slowing in the fourth quarter, the outdoor sector achieved an overall 7.8% year on year increase to £986 million in current prices, a 6.4% rise in real terms. Cinema advertising saw a 6.7% rise over 2003 to £192 million in current prices, a 5.3% increase in real terms.

Radio adspend grew by 3.4% in 2004 to £604 million in current prices, up on 2003 by 2.1% in real terms. The internet grew by 46.4% in current prices on the previous year (44.5% in real terms), confirming previous predictions that it would be the fastest growing medium.

The overall growth of 5.4% for 2004 exceeds the AA’s earlier forecast of 4.8%.

The AA predicts a strong 2005 for UK advertising expenditure, with total adspend expected to rise by 4.2%. Although all media is forecast to increase over the coming year, the internet is again predicted to lead the way, rising by an impressive 38.1%.

Other media expected to do well in 2005 are outdoor, forecast to increase by 6.2%; cinema, which is forecast to rise by 4.8%, and radio, which could rise by as much as 4.5%.

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

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