UK Adspend Forecast To Rise By 4.3% In 2005

Advertising expenditure growth slowed to 2.3%, at constant prices in the fourth quarter of 2004, following growth in excess of 4% in each of the first three quarters of the year, according to the AA. The annual increase for 2004 as a whole, of 4%, was the strongest rise recorded since the year 2000, with growth forecast to continue in 2005 (see UK Adspend Exceeds Expectations For 2004).

The AA has revised its prediction downwards for internet advertising expenditure, citing a 33% increase for 2005, compared to its earlier estimates of 38.1%.

All other media sectors are forecast to record real growth during the coming year, with outdoor and cinema predicted to show the greatest percentage increases with expenditures rising by 6.3% and 5.8% respectively.

The estimates for outdoor adspend remain constant with previous forecasts, while cinema has enjoyed a positive revision, with the AA predicting a 5.8% growth, compared to 4.8% earlier in the year.

According to data released by the Cinema Advertising Association (CAA), February enjoyed a massive 39.4% increase in year on year advertising spend, reaching £12.1 million.

Despite a slow start to the year, cinema advertising is predicted to enjoy a strong performance in 2005, following the 6.6% increase in revenue enjoyed in 2005(see Cinema Adspend Rises By 40% In February).