UK Adspend Forecast To Rise By 4.3% In 2005

Advertising expenditure in the UK is expected to rise by 4.3% in 2005, with internet adspend predicted to be the single fastest growing medium, increasing more than 33% compared to 2004.

The figures, published by the Advertising Association (AA) in its Advertising Forecast, are more optimistic than previous estimates which put total UK adspend for 2005 at 4.2% (see UK Adspend Forecast To Rise By 4.2% In 2005).

Advertising expenditure growth slowed to 2.3%, at constant prices in the fourth quarter of 2004, following growth in excess of 4% in each of the first three quarters of the year, according to the AA. The annual increase for 2004 as a whole, of 4%, was the strongest rise recorded since the year 2000, with growth forecast to continue in 2005.

The AA has revised its prediction downwards for internet advertising expenditure, citing a 33% increase for 2005, compared to its earlier estimates of 38.1%.

All other media sectors are forecast to record real growth during the coming year, with outdoor and cinema predicted to show the greatest percentage increases with expenditures rising by 6.3% and 5.8% respectively.

The estimates for outdoor adspend remain constant with previous forecasts, while cinema has enjoyed a positive revision, with the AA predicting a 5.8% growth, compared to 4.8% earlier in the year.

According to data released by the Cinema Advertising Association (CAA), February enjoyed a massive 39.4% increase in year on year advertising spend, reaching £12.1 million (see Cinema Admissions Up By 11% In February). The top three advertisers in terms of spend were Orange at £1.1 million with their out-of-reel sponsorship, followed by car makers Vauxhall, at £746,000. Volkswagen UK was the third largest spender, splashing out £582,000 during the month.

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

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