Confidence In TV Ad Market Falls

According to the National Economic Research Associates latest survey of television advertising expectations, confidence levels in the advertising market have fallen sharply since last month.

October’s survey of leading advertising agencies found that agencies’ confidence remains only slightly above normal for the time of year, and has dropped to the lowest level yet seen in 1993.

Agencies continue to expect low growth in total television advertising revenue over the next 12 months and have revised downwards their short term forecasts for the next few months.

Agencies’ low confidence is blamed on the general economic climate, with only the start of “one-off” campaigns preventing expectations from being uniformly depressed.

Respondents’ forecasts for total net ad revenue have also been revised downwards for 1993; their average forecast for television net ad revenue has fallen slightly to just below £1.89b. However, agencies are still expecting real growth of 3.2% in 1993.

The additional question from this month’s survey was about TV’s share of total advertising expenditure in 12 months time. It is expected that TV’s share of total advertising will increase, although there is variation about how much, due to different expectations about which parts of the economy will recover first.

Contact NERA; Jonathan Wilcox. 071 629 6787.