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UK advertising expenditure down 4% in 2008

UK advertising expenditure down 4% in 2008

UK advertising expenditure dropped 4% year on year to £18.6 billion in 2008, according to the latest figures from the Advertising Association.

The Advertising Statistics Yearbook 2009 reveals that this compares to positive annual growth of 4.3% in 2007.
UK Advertising Expenditure, 2008 
  Media expenditure  Production expenditure  Total expenditure 
Press 6,511 300 6,812
Television 3,819 645 4,464
Internet 3,350 255 3,604
Direct Mail 2,040 2,040
Outdoor & Transport 939 79 1,017
Radio 454 34 488
Cinema 205 205
TOTAL  17,318  1,313  18,631 
Source: Advertising Association’s Advertising Statistics Yearbook 2009 

The largest medium was press, attracting 37% of all advertising expenditure, followed by TV with 24% and internet in third place, accounting for just over 19%.

UK advertising expenditure, % share 
  % share 
Press 36.6
Television 24
Internet 19.3
Direct Mail 11
Outdoor & Transport 5.5
Radio 2.6
Cinema 1.1
TOTAL  100 
Note: These figures are inclusive of production costs.
Source: Advertising Association’s Advertising Statistics Yearbook 2009 

All media apart from the internet (+19%) and cinema (+1%) declined in 2008, the AA found.

UK Advertising Expenditure, year-on-year % change 
  Year-on-year % change 
Press -11.8
Television -4.9
Internet 19.1
Direct Mail -6
Outdoor & Transport -3.8
Radio -8.5
Cinema 1
TOTAL  -4 
Note: These figures are inclusive of production costs.
Source: Advertising Association’s Advertising Statistics Yearbook 2009 

At the start of June, GroupM forecast a 14% drop in UK adspend this year and a 3% fall next year (see GroupM forecasts 14% drop in UK adspend).

The forecast was revised from March 2009, with the main change coming for print, which moved from a fall of 20% to a fall of 26%.

In April, ZenithOptimedia forecast that UK ad spending will fall 8.7% this year, with global spend predicted to shrink by 6.9% (see UK adspend forecast to fall 8.7% in 2009).

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