Traditional media spend has dropped whilst digital and direct media continue to thrive, growing by 22% and accounting for a quarter of all advertising media spend compared to a fifth just a year ago, according to KPMG and Thomson Intermedia’s most recent quarterly bulletin.
Total advertising spend was up 3.4% in the first quarter of this year compared to Q1 in 2005. Overall growth of the advertising industry was entirely sustained by digital and direct media.
There was a year on year drop in traditional media spend for the first time since 2002 when comprehensive coverage began, with spend in Q1 down 2%. TV advertising spend fell 2.6% as advertisers shifted TV budgets to online.
Press advertising grew 1% solely due to growth in business, consumer and regional press, offsetting losses in daily and Sunday newspaper display revenues. Cinema fell by a massive 17%.
Letterbox activity rose, with spend increasing by a fifth more than in Q1 2005. Retail and entertainment continued to increase spend on targeted mailings while finance marketers actually decreased spending on direct mail.
Richard Bawden, head of media at KPMG, said: “As 2006 progresses it will be interesting to see if the first year on year decline in traditional media is a one-off or a trend.”
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