Advertising Expenditure reaches £10BN

Total advertising expenditure in the UK in 1994 amounted to £10.17 billion – an increase over the previous year of 8.5 per cent in real terms, in figures published by the Advertising Association in their ‘Advertising Statistics Yearbook 1995’.

The Director General of the Advertising Association, Andrew Brown said:”It is interesting that every single sector had real growth throughout 1994 compared with 1993″.

Advertising as a percentage of Gross Domestic Product grew from 1.67% in 1993 to 1.76% in 1994, but at that level is still some way below the record level reached in 1989 of 1.96%.

Total Advertising Expenditure (Including Direct Mail)

The ‘price war’ from mid 1993 among national newspapers resulted in a decrease in their average coverprice in real terms between 1992 and 1994 of 6 per cent which, since the number of copies sold was virtually the same in both years, reduced the amount spent on their purchase by a same 6 per cent.

The total net revenue per copy in 1994 ranges from £1.81 for the average quality Sunday (58p from copy sales; £1.23 from advertising) to 27p for the average popular daily (16p from sales; 10 p from advertising). And the net revenue per copy of the average free weekly, 42p from advertising alone, was 56 per cent higher than the total net revenue per copy of the average popular daily.

MediaTel

05/07/95 N E W S L I N E

ADVERTISING EXPENDITURE REACHES £10bn

The Advertising Association measures changes in advertising rates in terms of changed costs per thousand – per thousand circulation in the case of the press; per thousand commercial viewers (or viewing homes) in the case of television. For the two media together – which between them account for 83 per cent of all advertising spend – the average rate in 1994 was, at constant prices, 3.3 per cent above its 1985 level, having risen by 1.7 per cent over that of 1993.