Gains For Radio And Outdoor Fail To Boost UK Adspend
UK advertising expenditure inched up by a nominal 0.2% year on year during the third quarter of 2003 to reach almost £3.4 billion, as the difficult economic conditions continued to weigh on the market.
However, the figures published today in latest Quarterly Survey of Advertising Expenditure reveal impressive gains for commercial radio, which saw adspend increase by 8.8% year on year to £131 million as it leads the way out of the advertising downturn.
According to the RAB, the recent growth has been driven by a number of major FMCG brands, which have increased their spend on radio by more than 50% year on year. Procter & Gamble led the way in the twelve months to September, along with rival household goods manufacturer, Lever Faberge.
Outdoor advertising is also outperforming it rivals with adspend climbing by 6.6% year on year to £196 million. The data for the third quarter represents an increase of 9.5% for the first nine months of the year and suggests that the industry has put the worst of the advertising downturn behind it.
Television proved less fortunate during the third quarter of 2003 with adspend declining by 1.3% year on year to £847 million as advertisers continue to turn towards more accountable and cost-effective forms of marketing. However, recent research suggests that television advertising delivers more powerful sales benefits than any other medium (see TV Advertising Comes Out Top In Terms Of Sales Uplift).
Total press also has a less than impressive quarter with expenditure dipping by 0.4% year on year to £1,645 million. Within this, a 3% decline for display was off-set by a 2.6% increase for classified, which is nearing the £800 million mark.
Weaker than expected business conditions continued to weigh on the national newspaper market, which saw adspend decline by 3.8% year on year to £428 million. However, the sector has been boosted by the launch of a number of tabloid-sized versions of existing broadsheet newspapers (see ISBA Warns Of Tabloid Sting For Broadsheet Advertisers).
Things were more positive for regional newspapers, which recorded a 2.8% year on year increase in adspend to £739 million during the third quarter of this year. A report published by Mintel last month also suggests the industry is in a strong position to maintain and grow profitability over the longer term (see Research Claims Regional Press Is Set For Revenue Boost).
Consumer magazines saw expenditure remain virtually static during the three months to September with a slight 0.3% year on year decline to £190 million. However, business magazines were harder hit with adspend dipping by 3.5% during the same period to £289 million.
Direct mail failed to recreate the significant increases it has seen in the past with adspend increasing by just 0.6% year on year to £557 million. Earlier this year research urged advertisers to recognise that direct mail is more than a direct response medium and can be highly effective at raising awareness and communicating brand identity (see Research Urges Media Planners To Recognise Direct Mail).
The latest forecast from ZenithOptimedia suggests that the coming year will be more positive with the UK’s major media spend expected to rise by 3.2% in 2004 in current currency terms, following a 1.1% rise in 2003 on the same basis this year.
Advertising Association: 020 828 2771 www.adassoc.org.uk
Recent Related Stories from NewsLine Bellwether Reveals Reduced Pessimism For UK Advertisers Outlook Improves For Communications Agencies Survey Shows Business Confidence Is Returning To Britain
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left