Advertising Spend To Rise By 33% In Ten Years

The Advertising Association’s latest Long Term Advertising Expenditure Forecast suggests significant growth for the UK advertising market over the next decade.

In the absence of any real major threats to the advertising industry, real growth is predicted to rise by 33% between 2004 and 2014 on the AA’s ‘High Option’. Even on the ‘Low Option’, assuming developments such as the continuing growth of the internet and the fragmentation of television audiences have an adverse effect on advertising spend, 25% real growth is forecast over the same time period.

It seems the adspend downturn of 2000 has not meant the end of advertising expenditure growth in the foreseeable future, as forecasters had previously suggested. Instead, the underlying economic forces that drive spend are likely to continue to be positive, according to the AA.

The AA report concludes that while the fortunes of individual media will be mixed over the next decade, the general pattern for the advertising industry is one of growth, despite perceived threats.

In September, the AA revised downwards its advertising expenditure forecast for 2005 from 4.9% to 4.4% as a result of signs of weakening consumer confidence, but these latest forecasts suggest the long term prognosis for the UK advertising market is one of real growth.

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

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