The UK business to business media and information market is predicted to increase by 11% in 2005, reaching £17 billion and continuing the strong growth enjoyed by the sector over the past five years.
According to a new study released by the Business Information Forum and supported by the Department of Trade and Industry, the increasing competition among businesses has resulted in a higher demand in business information and analysis.
The rise of the internet’s popularity and strong penetration of the medium has made delivery of information faster and more effective, boosting the B2B market.
The report shows that business and professional magazines saw £3.4 billion in revenue this year, with newsletters and management reports worth £93 million, up 26%. Exhibitions were shown to generate £1.9 billion, up 26%, while direct marketing services contributed £4 billion.
According to the study, over half of the businesses surveyed predicted that there would be an increase in the number of B2B directories and databases produced online over the next two years.
However, despite this strong growth in the online sector, the survey also revealed an optimistic outlook for some traditional business media, with business magazine publishers forecasting growth in the number of hard copy titles.
According to TNS Media Intelligence, advertising expenditure for B2B magazines in the US for the first half of 2005 rose by 2.5% compared to the same period last year (see TNS Show US Adspend Up 4.5% In First Half Of 2005).
However, this growth is not seen in the UK, with the latest estimates from the Advertising Association (AA) claiming adspend in the business magazine sector will drop by 2.5% year on year (see UK Adspend To Rise By 2.3%).
Overall, the AA expects total UK adspend to rise by 2.3% at current prices in 2005, with the internet leading the way with 39.6% growth projected.
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