UK advertising expenditure forecasts published by the Advertising Association (AA) and the World Advertising Research Centre (WARC) last week show yet further evidence of the advertising recovery gaining momentum.
UK advertising expenditure for 2004 is set to show bigger growth than previously anticipated with figures being revised up from the 3.2% predicted earlier this year(see
UK Advertising Expected To Grow by 3.2% in 2004) to a more optimistic 4.8%.
The recovery that began in the first quarter of 2003 continued into the first quarter of 2004, with total advertising expenditure rising by 3.5% year on year at constant prices.
Internet advertising is expected to be the single fastest growing medium, with ad spend rising by more than 50% year on year. Alex White, head of the UK Association of Online Publishers, said: “The new predictions from WARC are welcome news and are the latest in a string of indicators to show that online has matured as a medium and is being taken seriously by advertisers.”
Healthy increases are also expected for outdoor advertising, which is set to witness expenditure grow by 8.7% year on year. Radio will continue to lead the way out of the downturn and investment in the sector is forecast to rise by a healthy 7.8%.
The advertising recovery shows real signs of gathering pace during 2004 and all media sectors are expected to record real growth this year, with the exception of cinema, which is forecast to show a small decline of 1.4%.
The latest predictions exceed a consensus of recent forecasts compiled by MediaTel INSIGHT, which suggests that UK advertising expenditure will increase by 3.9% in 2004.
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