Feature: TV Leads UK Ad Recovery
The latest figures from the Advertising Association (AA) show that UK advertising expenditure grew by 3.6% during the third quarter of the year, or 2.0% after adjusting for inflation, with television currently leading the recovery (see AA Figures Show TV Is The Fastest Growing Ad Sector).
TV showed growth of 7.7% in constant currency, significantly above the combined average of 2.0%. Only direct mail managed a similar rate of growth, at 6.9%. Business magazines have suffered heavily at the decline in business-to-business advertising and saw ad revenues dive by 7.4% during the quarter.
| Q3 2002 UK Adspend By Medium | |||
| Q3 2002 Adspend (£m) | Q3 2002 vs Q3 2001 % change | ||
| Current prices | Constant prices | ||
| National newspapers | 444 | -1.6 | -3.1 |
| Regional newspapers | 713 | 2.0 | 0.5 |
| Consumer magazines | 190 | 1.9 | 0.3 |
| Business magazines | 299 | -6.0 | -7.4 |
| Total press | 1,645 | -0.5 | -2.0 |
| – of which display | 876 | -1.1 | -2.6 |
| – of which classified | 769 | 0.1 | -1.4 |
| Television | 847 | 9.3 | 7.7 |
| Radio | 120 | 0.7 | -0.8 |
| Outdoor | 183 | 5.1 | 3.5 |
| Direct mail | 554 | 8.6 | 6.9 |
| Total advertising | 3,349 | 3.6 | 2.0 |
| Source: Advertising Association, December 2002 | |||
Television Revenue Figures Television airtime sales at ITV have seen some improvement in the latter two quarters of the year, but December looks likely to dip once again and visibility remains poor into the beginning of next year.
The latest TV revenue figures, based on agency estimates, are shown here. The greatest growth is from Channel 5 and satellite. This concurs with a forecast from Zenith Optimedia that TV growth in the UK will be muted over the next three years, due to the fact that spend is moving to the smaller, cheaper channels and away from ITV.
| UK Television Revenue Trends (£) | ||||
| Jul 2002 | Aug 2002 | Sep 2002 | Oct 2002 | |
| ITV 1 | 122,360,000 | 123,256,000 | 146,340,000 | 176,400,000 |
| Channel 4 | 46,500,000 | 41,230,000 | 56,170,000 | 65,830,000 |
| five | 17,950,000 | 17,333,000 | 21,770,000 | 25,400,000 |
| Satellite | 33,900,000 | 33,433,000 | 47,420,000 | 52,090,000 |
| Source: MediaTel.co.uk/Agency estimates | ||||
| UK Television YoY Revenue % Growth | ||||
| Jul 2002 | Aug 2002 | Sep 2002 | Oct 2002 | |
| ITV 1 | 3.7 | 7.1 | 2.8 | 10.1 |
| Channel 4 | 6.0 | 11.9 | 12.7 | 15.8 |
| five | 39.4 | 30.0 | 31.1 | 31.8 |
| Satellite | 29.4 | 13.4 | 35.1 | 33.9 |
| Source: MediaTel.co.uk/Agency estimates | ||||