A new forecast from OPera Media predicts that continued strong increases from the online search and classified sectors will see UK total advertising spend increase by 3.3% this year, adding that the television, press and radio markets will continue to lose share of advertising spend in 2007.
OPera also says that television revenues will remain static year on year, whilst newspaper circulations will continue to drop this year.
OPera says that overall TV commercial audience supply is expected to increase again in 2007, in the region of 2.5%, with 2008 revenues predicted to increase by 3%, bringing mild inflation, rather than deflation, to the market.
ZenithOptimedia’s recent UK Television Forecasts to 2012 predicted that the television ad market will stop shrinking this year, and start growing again in 2008 (see UK TV Ad Market To Grow).
OPera added that newspaper circulations are continuing to drop in 2007, with the red tops bearing most of these losses. This trend will continue, according to OPera, with paid for titles losing out to freesheets.
Total magazine revenue is predicted to be up around 2% in 2007, whilst digital, meanwhile, is expected to expand by a further 25%.
Out-of-home revenues are forecast to increase by around 5.5% in 2007, with radio revenues predicted to be close to flat year on year, with the industry continuing to maintain positive trading positions and trade yields, meaning that prices will rise slightly across 2007.
Cinema admissions for 2007 are forecast to be flat year on year, with cinema revenues predicted to finish around 3% down this year.
A forecast from GroupM earlier this month said that global ad revenue could rise 6% in 2007 to $433 billion and 7% in 2008 to $462 billion (see Advertising Keeping Pace With Global Economy).
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