AA Data Shows UK Adspend Fell 2.6% In 2001

Total UK advertising expenditure fell by 2.6% in 2001, following nine years of uninterrupted growth, according to the latest data from the Advertising Association (AA), as compiled by the World Advertising Research Centre (WARC).

Adspend totalled £16.5 billion last year, down from £17.0 billion the year before. After adjustment for inflation this represents a decline of 4.4%, says the report.

The figure of £16.5 billion for total UK adspend includes agency commission and production costs for newspapers, magazines, directories, television, radio, outdoor, cinema, direct mail and the internet.

The research also shows that the share of advertising as a percentage of total economic activity in the UK fell from 2.04% in 2000 to 1.89% in 2001.

By medium Press advertising, including classified and production costs, reached £8.5 billion in 2001, down 1.0% on 2000, or 3.0% in real terms. Press accounted for 51.5% of total display and classified advertising in 2001, and 35.7% of total display advertising.

Directory advertising was the fastest growing press sector in 2001, up 10.0% on the figure for 2000, or by 8.0% in real terms, says the AA.

Television adspend, hard hit by recession, was down 10.7% on 2000, a fall in real terms of just over 12.0%. Radio declined by 9.0% in current prices, and 11.0% in constant prices.

Outdoor spend was £788 million, down 3.0% on 2000, representing a fall in real terms of 4.5%. Cinema adspend reflected the success of the medium in attracting growing audiences through the year and rose by 28.0% to £164 million, an increase in real terms of some 26.0%.

Direct mail advertising spend totalled £2.2 billion, up 9.0% on 2000, or 7.0% in real terms. Online adspend grew by 7%, or 5% in real terms, to reach £166 million.