Television advertising revenue in the UK is forecast to grow at its fastest rate since 2000, aided by the prospects of a general election and the UK’s economic upturn.
New data released by media group ZenithOptimedia, predicts TV adspend to increase by 12% in Q1 2005, revising its previous estimates up, from 5% for the quarter. This confirms estimates released last week by Starcom, also predicting a 12% increase in adspend for the same period (see
TV Ad Revenue At 5 Year High).
Media buying agencies claim that the proposed general election in May and the strengthening of the UK economy has increased TV advertising demand. The Central Office of Information, which handles all Government advertising campaigns, is the largest advertiser in the UK and, as it is not allowed to advertise once an election has been called, spending normally increases beforehand.
Chris Hayward, head of television at ZenithOptimedia said: “Growth is coming from such sectors as cars, telecommunications, financial services, travel and, of course, government spending.”
Speaking to MediaTelINSIGHT, John Overend, joint managing director of OPera Media, confirmed the industry consensus, saying: “January and February TV revenues are much stronger than expected and way ahead of original forecasts (see TV Adspend Predicted To Rocket In Q1 2005).” OPera has forecast a rise of 4.9% in television advertising revenues for 2005 as a whole.
Mediaedge:cia has also predicted a rise in TV adspend over the first quarter of 2005, up 14% attributing the increase to fast moving consumer goods and retail.
The last time the World Advertising Research Centre (WARC) recorded growth for television adspend as high as 12%, was in Q2 2000.
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