Fourth Quarter Sees Boost To UK Adspend
UK advertising expenditure rose by 4.9% year on year during the fourth quarter of 2002 to £3.7 billion. This brings total adspend for the year to £13.9 billion, an increase of 0.8% on the previous year.
The recovery in television advertising also continued into the last three months of 2002, with expenditure increasing for the third consecutive quarter by 9.8% to over £1 billion. The industry, which has been hard hit by difficult economic conditions, experienced a 4.3% increase over the course of the year as a whole, with adspend for 2002 reaching more than £3.6 billion.
Radio saw its strongest growth since the final quarter of 2000, with advertising expenditure increasing by 3.1% year on year in the fourth quarter to £130 million. For the whole year, total radio advertising expenditure, excluding sponsorship, was £491 million, a slight increase of 0.8%.
Q4 2002 UK Advertising Expenditure By Medium | |||
Q4 2002 vs Q4 2001 % change | |||
Category | Adspend (£m) | Current Prices | Constant Prices |
National Newspapers | 498 | 3.1 | 0.5 |
Regional Newspapers | 702 | 2.8 | 0.2 |
Consumer Magazines | 214 | 3.6 | 1.1 |
Business Magazines | 278 | -5.0 | -7.3 |
Total Press | 1,691 | 1.6 | -0.9 |
– of which display | 971 | 0.3 | -2.2 |
– of which classified | 719 | 3.5 | 0.9 |
Television | 1,047 | 9.8 | 7.1 |
Radio | 130 | 3.1 | 0.5 |
Outdoor | 188 | 15.5 | 12.6 |
Direct Mail | 667 | 3.9 | 1.3 |
Total Advertising | 3,721 | 4.9 | 2.3 |
Source: Advertising Association, March 2003 |
Press advertising National newspaper advertising expenditure grew by 3.1% year on year during the fourth quarter to £498 million. Popular nationals registered an increase of 5% and quality nationals were up by 3.4% during the same period. However, for the whole of 2002, the sector was down by 6.4% year on year to £1.9 billion. Display and classified advertising fell by 6.1% and 7.5% respectively throughout the year.
Regional newspapers saw adspend increase by 2.8% year on year during the fourth quarter, to £702 million. Expenditure for the year as a whole grew by 1.3% to £2.9 billion, with dailies and Sundays experiencing 0.1% growth and free papers and paid-for weeklies seeing adspend improve by 1.1% and 4% respectively.
Advertising expenditure in consumer magazines improved for the second consecutive quarter in the three months to December 2002. This helped the sector to finish the year 0.8% up on 2001, with adspend increasing from £779 million to £785 million.
Business magazines had a less than impressive fourth quarter, with advertising expenditure falling by 5% year on year to £278 million. The sector was down by 9.4% for the year to £278 million.
The popularity of direct mail as a marketing tool continued into the fourth quarter of 2002, with advertising expenditure improving by 3.9% year on year to £667 million. For the whole of the year adspend grew by 6.7% to £2.4 billion.
2002 UK Advertising Expenditure By Medium | ||||
2001 | 2002 | |||
Category | Adspend (£m) | YoY Change (%) | Adspend (£m) | YoY Change (%) |
National Newspapers | 2,063 | -8.4 | 1,930 | -6.4 |
Regional Newspapers | 2,834 | 2.6 | 2,870 | 1.3 |
Consumer Magazines | 779 | 3.9 | 785 | 0.8 |
Business Magazines | 1,202 | -5.4 | 1,088 | -9.4 |
Television | 3,525 | -10.7 | 3,677 | 4.3 |
Radio | 487 | -9.1 | 491 | 0.8 |
Outdoor | 678 | -2.8 | 690 | 1.9 |
Direct Mail | 2,228 | 8.7 | 2,378 | 6.7 |
Total Advertising | 13,794 | -3.3 | 13,908 | 0.8 |
Source: Advertising Association, March 2003 |