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UK Adspend Forecast To Rise 5% In 2005

UK Adspend Forecast To Rise 5% In 2005

Advertising expenditure is expected to rise by almost 5% this year and by nearly 4% in 2006, according to the latest figures from the Advertising Association (AA) and the World Advertising Research Centre (WARC).

These estimates are more optimistic than previous figures released by the AA in its Advertising Forecast, which predicted advertising expenditure in the UK to rise by 4.3% in 2005 (see UK Adspend Forecast To Rise By 4.3% In 2005).

The European Advertising & Media Forecast Databook covers nineteen European countries along with the USA, Canada and Japan. It predicts adspend in the USA to increase by 1.5% this year followed by a more healthy 2.5% in 2006, compared to a 1.6% growth in the Eurozone in 2005 and a 2.3% increase in 2006.

Significant growth is expected across all media in Europe throughout 2005, with television, radio, cinema, and particularly the Internet, forecast to be the fastest growing sectors.

Internet’s strong performance has been expected, with industry experts predicting the medium to increase substantially over the coming year. In its latest Bellwether report, the IPA predicts the internet and direct marketing will enjoy the strongest growth in 2005 (see Q1 2005 Bellwether: Slower Growth Period Ahead).

  2004 Advertising expenditure (current US$bn)  2004/2005 % change local currency (constant prices)  2005/2006 % change local currency (constant prices) 
USA  106.1 1.5 2.5
Japan  37.2 1.9 1.2
UK  26.2 4.9 3.8
Germany  21.8 0.7 2.3
France  13.3 1.6 1.4
Eurozone  74.2 1.6 2.3
Source: WARC’s European Advertising and Media Forecast Databook, May 2005

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