Advertising expenditure in the UK rose by 5.6% to £18.4 billion in 2004, enjoying an increase of 4.2% in real terms, according to the latest figures released by the Advertising Association (AA).
The AA’s
Advertising Statistics Yearbook 2005, researched and complied on its behalf by the World Advertising Research Centre (WARC), shows that although adspend has recovered steadily since the decline seen in 2001, annual growth rates are still below those of the 1990s.
Press accounted for the largest share of total advertising expenditure in 2004, at 47.5%. Television rose by 5.4% year on year to achieve a share of 25.8%, making it the second largest medium in terms of adspend and reaching a total of £4,740 million in 2004.
Direct mail commanded a share of 13.4% during 2004, with outdoor at 5.4% and the internet increasing to 3.6%. Radio and cinema saw shares last year, of 3.3% and 1.0%, respectively.
Within the press sector, advertising expenditure grew the fastest in regional newspapers and consumer magazines, up by 5.8% and 4.5% year on year.
Among the other media, outdoor and transport adspend rose by 7.8%, while cinema was up by 6.7%, compared to the same period last year.
The growth rate for radio slowed to 3.4% and expenditure on direct mail remained unchanged, the internet was the fastest growing medium, with internet adspend rising by 60% year on year.
Last month, the AA and WARC showed total advertising expenditure for the first quarter of 2005 to be up by 5.3% year on year, totalling £3,993 million for the first three months of the year (see UK Adspend Forecast To Rise 5% In 2005).
The AA and the World Advertising Research Centre (WARC) has forecast advertising expenditure in the UK to rise by almost 5% this year and by nearly 4% in 2006 (see UK Adspend Forecast To Rise 5% In 2005).
| |
| UK Advertising Expenditure 1994-2004 |
| Year |
Expenditure (current £m) |
Annual % change |
| |
|
Current Prices |
Constant Prices |
| 1994 |
10,136 |
10.9 |
8.8 |
| 1995 |
11,026 |
8.8 |
6 |
| 1996 |
12,080 |
9.6 |
6.9 |
| 1997 |
13,340 |
10.4 |
8.5 |
| 1998 |
14,415 |
8.1 |
6.4 |
| 1999 |
15,412 |
6.9 |
5.5 |
| 2000 |
16,987 |
10.2 |
9.3 |
| 2001 |
16,537 |
-2.6 |
-3.8 |
| 2002 |
16,780 |
1.5 |
0.2 |
| 2003 |
17,411 |
3.8 |
2.4 |
| 2004 |
18,385 |
5.6 |
4.2 |
| Source: AA’s Advertising Statistics Yearbook 2005, WARC |
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