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Optimedia Forecasts

Optimedia Forecasts

Optimedia UKÂ’s Revenue and Inflation Estimates, published in March 2000, include estimated revenue growth rates for all the major media as far as 2003. As in last year’s edition, Optimedia is the least optimistic about Commercial Radio’s immediate future. Last year’s forecast for 2000 has been upgraded from 6.0% to 9.9%, however the forecast for 2001 is down from 4.0% to 3.3%, before recovering to 7.0% in 2002. The reason given for this prediction is a slowdown in the current rates of growth in advertiser demand for the medium. For the whole industry, Optimedia forecasts steady growth rates of around 5% during the next four years, confident that the economy will continue to support advertising industry growth.

Worth noting are Optimedia’s forecasts of Internet advertising revenue growth as far as 2003. While it is difficult to see in what direction advertising on the Internet will develop, Optimedia believe that Internet revenues will continue their prodigious growth and will overtake Radio in 2003. Year-on-year rates of growth by medium – Optimedia
  2000  2001  2002  2003 
 
All Advertising  5.30% 4.10% 5.40% 5.20%
 
Commercial Radio  9.90% 3.30% 7.00% 9.90%
 
Television  6.30% 3.50% 4.00% 2.40%
 
National Press  3.00% 2.00% 3.00% 3.00%
 
Regional Press  2.00% 1.90% 3.80% 3.00%
 
All Magazines  2.10% 2.00% 3.00% 2.90%
 
Outdoor  8.00% 5.00% 5.00% 4.90%
 
Cinema  7.50% 4.30% 5.00% 4.80%
 
Internet  200.00% 108.30% 64.00% 53.70%

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