Prior to the seminar, the INSIGHT team carried out the first survey of the UK’s top buying and planning agencies asking opinions on the digital switchover (see
Media Agencies Uncertain Of Digital Switchover).
The survey found that the agency world is less than convinced of the reality of Government targets for the switch from analogue to digital, which is set for 2012.
Similar concerns were raised at the MediaTel INSIGHT conference, with panelist, Ray Snoddy, commenting on the severe lack of public knowledge on the switchover. He said: “I am staggered on the level of ignorance on this issue (see SwitchCo Launched Despite Fears Raised Over Switchover Date).”
Fellow panelList, David Scott, deputy chief executive of Channel 4 and a director of SwitchCo, said that although he was confident that the switchover would be completed on time, perhaps 2009-2013 would be a better time for the move, considering the lack of public awareness.
A report published during April by Informa Telecoms & Media predicted that, by the end of 2005, digital penetration in the UK will increase TO 66%, with the number of digital homes in the UK hitting 16.4 million. This strong growth puts it well ahead of Europe which is only considering imposing a universal digital switch-over (see UK Leads The Way In Digital Penetration).
Also during April, two of the industry’s most respected forecasters, ZenithOptimedia and the IPA, gave their predictions for advertising expenditure, both projecting the internet to be the fastest growing medium in 2005.
Media agency, ZenithOptimedia estimated global advertising expenditure to enjoy growth of 5.4% in 2005, up from previous estimates of 5.0%, while 2006 is expected to rise by 6.5%, compared to the agencies earlier forecast of 5.8%. Predictions for adspend growth in 2007 are not as optimistic, at 6.1%, revised upwards from 5.8% (see Advertising Market Forecast To Remain Solid).
The IPA’s latest quarterly Bellwether report, complied by NTC research, revealed that the first quarter of 2005 signals slower growth for marketing, compared to the strong performance enjoyed in 2004 (see Q1 2005 Bellwether: Slower Growth Period Ahead).
The IPA claims that direct marketing and the internet will show the strongest signs of growth for the coming year, with current budgets in Q1 revised up, while budgets for main media advertising, sales promotion and “all other” were revised down.
Elsewhere in April, the Interactive Advertising Bureau, IAB, set a target for the internet to be a billion pound medium and overtake outdoor advertising market share by mid 2006. The trade body also announced a Five Point Plan to help advertisers get more out of online media (see IAB Sets Target For Online Industry).
