Confidence Returns As Top Advertisers Increase Spend
Nearly two thirds of the UK’s top one hundred advertisers increased their above-the-line spend last year, in a move that suggests the industry is emerging from the downturn and into a period of growth.
Figures from Nielsen Media Research published by Marketing magazine show that total spend rose by a solid 6.3% during 2003 to around £3.5 billion as confidence returned to the market following a prolonged period of economic uncertainty and budget tightening.
Around 33 of the top one hundred advertisers reduced their spend last year, compared to 25 in 2002 and 50 in 2001. However, of the 67 that increased their adspend, ten boosted it by more than 50% or more and three – AXA Sun LifeDirect, Hutchinson and 3G – increased it by more than 100%.
Proctor & Gamble retained its position as the UK’s biggest spending advertiser for the second year running. The FMCG giant increased its spend by 12.8% last year with £187 million being invested on brands such as Ariel, Fairy, Bold and Pringles.
The company’s associate director of UK Media, Bernard Balderston, told Marketing: “Our total expenditure has been strong, which signals the competitiveness of the environment P&G finds itself in. Advertising is an important part of our proposition – we offer premium products and ads are the best way to get that message across.”
The Government’s advertising arm, COI Communications, spent another year at second place in the top one hundred table. The unit reduced its spend by 15% during 2002 after coming under fire for topping to table the previous year. However, it upped its spend by 14.8% during 2003 to just over £138 million.
BT Group remained third in the table with its adspend fairly static. It also retained its position as the highest single brand in the table – the majority of the top ten are mutiple-brand companies. Meanwhile, Fourth placed L’Oreal experienced the biggest increase in the top ten with a 27.6% rise during 2003 to £90.4 million.
| Top Ten UK Advertisers 2003 | |||
| Organisation | 2003 Spend | YoY% Change | |
| 1 | Proctor & Gamble | 186,976,473 | 12.8 |
| 2 | COI Communications | 138,238,403 | 14.8 |
| 3 | BT | 96,313,883 | -0.4 |
| 4 | L’Oreal Golden | 90,364,657 | 27.6 |
| 5 | Ford | 79,141,052 | -16.6 |
| 6 | Lever Febergé Personal Care | 69,869,875 | 19.1 |
| 7 | Nestlé | 68,727,299 | 8.3 |
| 8 | Orange | 62,569,875 | 12.3 |
| 9 | Masterfoods | 62,399,473 | -6.9 |
| 10 | DFS | 61,403,696 | 3.4 |
| Source: Nielsen Media Research/Marketing | |||
The outlook finally appears to be improving for UK advertisers and the IPA’s latest Bellwether report reveals a rising tide of corporate optimism that could see adspend climb to levels not seen since the dotcom boom (see Bellwether Reveals Increasing Optimism For Advertisers).
A study from the Chartered Institute of Marketing also predicts that marketing spend will increase by around 3% this year. However, it casts doubts over the Government’s ambitious forecasts for economic growth and warns that the economic recovery will not be as swift as first thought (see Marketing Spend Expected To Grow By 3% During 2004).
Nielsen Media Research: 01344 469 200 www.nielsenmedia.com
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