TV Advertising Expectations Remain High

According to National Economic Research Associates’ latest survey of television advertising expectations, confidence levels in the ad market remain “above normal for the time of year” for the ninth month in succession.

Confidence has however fallen slightly on last month, and only low growth in television ad revenue is expected over the next year.

There continues to be a difference in confidence levels between that felt by the larger firms and that felt by smaller firms. The large firms’ continued optimism is founded on the strength of new work, whilst the smaller agencies blame “the general economic climate” as the reason for their low confidence levels.

Agencies expectations for the total net ad revenue for 1993 is now £1.89b. (This figure includes cable and satellite).

In this month’s survey the additional question asked was about the share of total tv net ad revenue going to cable and satellite channels in 12 months time and in 5 years time. Agencies expect the cable and satellite channels to be taking 4.7% of the total television ad revenue in 12 months time increasing to 11.6% over the next 5 years. If the forecasts of the more optimistic agencies are to be believed cable and satellite channels could be taking up to 20% of total revenue within five years.

Jonathan Wilcox, NERA 071 629 6787