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UK Adspend Reached £4.2 Million In Q1 2007

UK Adspend Reached £4.2 Million In Q1 2007

The Advertising Association’s (AA) Quarterly Survey of Advertising Expenditure has just been published, showing that advertising expenditure in the UK totalled £4.2 million in the first quarter of 2007, representing a year-on-year increase of 3.0%.

The survey, researched and compiled by the World Advertising Research Center (WARC), reveals that this is the highest such increase recorded since the first quarter of 2005.

The figures shown in the table below exclude expenditure on advertisement production, and on sponsorship and promotions, but include agency commission. All figures are given at current prices, ie without adjusting for inflation.

Advertising Expenditure By Medium Q1 2007, £m Current Prices, And Q1 2007 On Q1 2006 Percentage Changes In Current Prices 
Q1 2007 adspend  Current prices, £m  % change yr/yr 
National newspapers1  492 -1.8
Regional newspapers 705 -3.8
Consumer magazines2  188 -1.4
Business magazines 203 -6.6
Total press 1,589 -3.3
– of which display  869  –2.1 
– of which classified  720  -4.8 
Television 962 -0.8
Radio 127 -1.8
Outdoor 237 7.7
Cinema 30 9.9
Internet3  648 42
Direct mail 615 -3.6
Total measured adspend4  4,208  3 
Notes: 1) Includes supplements, 2) Excludes supplements, 3) Internet figure is a WARC estimate, 4) Excludes directory advertising.

Cinema was the second-fastest growing medium, rising 9.9% on Q1 2006, whilst the outdoor sector also posted a strong year-on-year increase of 7.7%.

The AA says that internet advertising expenditure is estimated to have gained 42% year-on-year in the first three months of the year, although actual results are currently unavailable.

Both TV and radio improved from a poor second half 2006 to show only small declines at the start of 2007, of 0.8% and 1.8% respectively.

In May, the AA revealed that total UK adspend passed the £19 billion mark in 2006, with press accounting for the largest share of total adspend, at 43.7% (see UK Adspend Passed £19 Billion In 2006).

Meanwhile, in January a Merrill Lynch forecast estimated 5.0% UK advertising growth in 2007, higher than the UK forecasts from both Aegis and Zenith (see 5.0% Ad Growth Forecast For UK In 2007).

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