Promising Long Term Outlook For UK Ad Market
There is no denying it has been a difficult two years for the UK advertising industry but media executives should be encouraged by new forecasts which show that expenditure could rise by as much as 42% over the next decade.
Expectations that advertising would bounce back quickly from the decline of 2001 have been wide of the mark but expenditure has recovered from all previous post-war recessions and the AA is optimistic that this will prove the case again.
The report offers a high end and low end projection for ad growth through to 2013. The optimistic projection, which assumes no major threats to advertising, has revenues rising by 42% in the next ten years. Even on the low option, which takes into account the damaging effect that the internet and a weak stock market could have on the advertising economy, 20% real growth is predicted.
| UK Long Term Advertising Forecasts* | ||||||
| Year | High Option Revenues (£m) | Low Option Revenues (£m) | ||||
| Total | Display | Classified | Total | Display | Classified | |
| 2003 | 11,000 | 7,513 | 3,487 | 10,800 | 7,398 | 3,402 |
| 2013 | 15,650 | 10,845 | 4,805 | 12,950 | 9,195 | 3,756 |
| % Change | 42.3 | 44.3 | 37.8 | 19.9 | 24.3 | 10.4 |
| * at constant 1995 prices | ||||||
| Source: Advertising Association, October 2003 | ||||||
