AA Figures Show UK Ad Spend Continuing To Rise

Advertising expenditure in the UK rose by 5.6% in 2004, totaling £18.4 billion, according to the Advertising Association’s (AA) Advertising Statistics Yearbook 2005.

The yearbook, researched and compiled on the AA’s behalf by the World Advertising Research Centre (WARC), demonstrates an annual growth rate of 4.2% in real terms, after adjusting for inflation.

The new statistics show advertising expenditure in Britain recovering steadily since the decline of 2001, although growth rates are still somewhat below those of the 1990s.

Press advertising accounted for the largest share of total advertising expenditure by far last year, according to the AA, with 47.5% of adspend directed at the medium. Television was the second largest medium, with a 25.8% share, while direct mail secured third place at 13.4%.

The remaining share of advertising expenditure was taken by outdoor, with 5.4%, the internet with 3.6%, radio with 3.3%, and cinema at 1%.

Total adspend for press was split equally between display and classified advertising, with ad expenditure growing fastest amongst regional newspapers and consumer magazines, rising by 5.8% and 4.5% respectively. In real terms the rises equate to 4.4% and 3.1%.

Television ad expenditure rose by 5.4% to £4.7 billion in nominal terms, an increase in real terms of 4.0%, while in other media, outdoor and transport saw a 7.8% rise in nominal terms and cinema increased by 6.7%.

The growth rate for radio slowed to 3.4%, and expenditure on direct mail remained unchanged. The internet continued its growth spurt, however, with advertising expenditure rising by a massive 60%.

Advertising Association: 020 7828 2771 www.adassoc.org.uk