UK advertising expenditure is forecast to rise by 2.3% at current prices this year, with online adspend expected to lead the way in terms growth; up 39.6% according to the latest predictions from the Advertising Association’s (AA) Advertising Forecast.
The figures, complied and researched by the World Advertising Research Centre (WARC), cover all media and claims that outdoor and cinema adspend will enjoy the largest gains among traditional media, rising by 7.4% and 4.9% respectively.
The AA expects declines across the board for business and professional magazines as well as radio and direct mail. Elsewhere, regional and national newspapers are both predicted to see slight growth, increasing by 0.4% and 0.7% respectively, while cinema continues the upwards trend with a rise of 4.9%.
The AA has revised downwards its forecast for advertising expenditure in the UK for 2005, with its current 2.3% forecast a substantial drop from its earlier estimate of 3.7% (see UK Adspend Forecast To Rise By 4.3% In 2005).
Looking ahead, the AA is optimistic about 2006 adspend, projecting an acceleration of growth and an increase of 4.4% for the year, at current prices.
| Annual Change In Advertising Expenditure By Medium |
| |
2005 on 2004 % change at current prices |
| National newspapers |
0.7 |
| Regional newspapers |
0.4 |
| Consumer magazines |
1 |
| Business magazines |
-2.5 |
| Total Press |
0.1 |
| of which display |
0.9 |
| of which classified |
-0.8 |
| Television |
2.9 |
| Radio |
-1.5 |
| Outdoor |
7.4 |
| Cinema |
4.9 |
| Internet |
39.6 |
| Direct mail |
-3.3 |
| Total |
2.3 |
| Source: AA’s Advertising Forecast, October 2005 |
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