Q3 Ad Revenues See “Marginal” Increase

New figures from the Advertising Association (AA) show ad expenditure in the UK to have totaled £3,779 million in the third quarter of 2005, representing a marginal increase of 0.1% year on year.

The figures, published today in the AA’s Quarterly Survey of Advertising Expenditure, show a 2.3% decline in real terms, after adjusting for inflation.

The media covered by the survey, compiled by the World Advertising Research Centre (WARC), include national and regional newspapers, consumer and business magazines, television, radio, outdoor, cinema, internet and direct mail.

According to the new findings, a “slackening in consumer spending” has caused growth in advertising expenditure to decelerate over the last six months, although total advertising expenditure has risen by 2.9%, at current prices, over the twelve-month period ending September 2005.

The third quarter of 2005 saw six of the ten media covered by the AA’s report register year on year declines. The best performers were outdoor, which enjoyed a 4.0% increase at current prices; television, which enjoyed a 3.3% increase at current prices and the internet.

According to WARC estimates, the internet has seen advertising expenditure increase by half, when measured at current prices, although actual results will not be available until the spring.

Last week saw the AA release its latest long-term forecast, also compiled by WARC, predicting a substantial rise of up to 43% in advertising expenditure between now and 2017 (see AA Forecasts Point To Ad Expenditure Growth).

Advertising Association: 020 7828 2771 www.adassoc.org.uk