UK Adspend Predicted To Reach £12.25 Billion In 2006
Total advertising spend for the UK is forecast to reach £12.25 billion in 2006, up 4.1% on 2005, according to new research from ZenithOptimedia reported in the trade press.
This is lower than both the 6.1% growth predicted globally and the 4.4% growth forecast for Europe as a whole. When adjusted for inflation, UK growth is expected to be just 1.4%.
The radio sector is predicted to show a slight recovery of 2% year-on-year, with good performances from Emap and Chrysalis at the heart of that, while the report also forecasts that things could improve more if GCap performs well in the second half of the year.
Press advertising is forecast to remain static year-on-year. Marginal growth in display is predicted to be offset by declines in the classified sector, with money from that market going more towards online.
The World Cup did not have the effect on growth that many analysts thought it would. ZenithOptimedia suggests that, particularly with regard to ITV, the CRR and the increasing take-up of digital television could all have played their part in preventing a World Cup windfall for advertisers.
| Advertising Expenditure (£ Millions) | ||||||||
| Year | Total | Papers | Mags | TV | Radio | Cinema | Outdoor | Internet |
| 2004 | 11,397 | 4,341 | 1,651 | 3,392 | 465 | 163 | 720 | 701 |
| 2005 | 11,759 | 4,173 | 1,607 | 3,455 | 443 | 156 | 763 | 1,162 |
| 2006 | 12,246 | 4,151 | 1,626 | 3,489 | 452 | 159 | 800 | 1,569 |
| 2007 | 12,756 | 4,190 | 1,655 | 3,524 | 463 | 162 | 848 | 1,914 |
| Year-On-Year % Change At Current Prices (Not Inflation Adjusted) | ||||||||
| Year | Total | Papers | Mags | TV | Radio | Cinema | Outdoor | Internet |
| 05 v 06 | 3.2 | -3.9 | -0.5 | 1.9 | -4.7 | -4.3 | 6.0 | 65.8 |
| 06 v 05 | 4.1 | -0.5 | 1.2 | 1.0 | 2.0 | 1.9 | 4.8 | 35.0 |
| 07 v 06 | 4.2 | 0.9 | 1.8 | 1.0 | 2.4 | 1.9 | 6.0 | 22.0 |
ZenithOptimedia: www.zenithoptimedia.com