UK Q1 Adspend: Up In Current Prices, Down After Inflation

The high spots in Q1 were outdoor and direct mail, which turned in current currency growth of 16.8% and 4.5% respectively, despite the depressed economy and the approach to a war in Iraq. In real terms currencies, these two sectors were the only two not to show any negative growth.

National newspapers (-2.4%) were poorer than regionals (+0.6%) and business-to-business publishing (-3.2%) continues to be one of the weakest areas of the advertising sector. Broadcast media were better: Radio grew by 2.1% and television spend nudged up 1.7% in current prices.

Q1 2003 UK Advertising Expenditure By Medium
ÂÂ	ÂÂ	ÂÂ	ÂÂ
ÂÂ	Adspend (£m)	Q1 2003 vs Q1 2002 % change
		Current Prices	Constant Prices
National newspapers	494	-2.4	-5.3
Regional newspapers	736	0.6	-2.4
Consumer magazines	180	-2.2	-5.1
Business magazines	225	-3.2	-6.1
Total press	1,633	-1.2	-4.1
– of which display	868	-3.0	-5.9
– of which classified	766	1.0	-2.0
Television	864	1.7	-1.3
Radio	123	2.1	-1.0
Outdoor	170	16.8	13.3
Direct mail	658	4.5	1.4
Total advertising	3,448	1.5	-1.5
Source: Advertising Association, June 2003

In terms of the trends over the last year, Q1 2003 was not a particularly strong period. It shows decline in growth when compared to the previous two quarters (which had started to show a positive upward trend) and its 1.5% growth comes against a weak period in Q1 2002, when spend was already down by 6.0% on 2001.

Given that Q2 last year showed stronger growth than Q1, the ad sector will have to show some significant improvement if the figures for Q2 this year are to return to the more positive trend that started in the latter half of last year.