UK Advertising Forecasts From Initiative Media
The internet advertising market in the UK is set to stage a rather spectacular comeback next year, if new forecasts from Initiative Media prove correct.
The media agency is predicting that web advertising revenue will soar by 47.9% in 2003, following the 15.7% decline of this year. By comparison, OMD UK – another media buying agency – has forecast that internet advertising will grow by just 5.3% next year.
Initiative puts overall UK adspend growth at 4.6% in 2003, meaning that the internet forecast is 43.3% points above the market average; OMD UK’s internet growth is just 1.3% points above its 4.0% all media forecast.
The Initiative figures expect that 2002 spend will come in positive, up 1.7% on last year, although the period has been typified by ‘weak and patchy’ growth across all media.
Initiative says that online spend for 2002 was expected to be around double 2001 levels, but as it turned out the medium suffered badly along with all other media as a result of 11 September and the general media recession.
“Recovery is expected in 2003 with the [online] medium still in a healthy state. Advertisers are keen on seeing a return on their investment, especially during times of recession and online’s accountability helps ensure this. Indeed, any medium that has a direct response element that is capable of being measured is likely to benefit in today’s environment,” claims the report.
Growth in the press sector, of 3.5%, will be driven more by consumer magazines than newspapers, whilst radio is currently benefitting from strong spend in the sponsorship and promotions sector.
Outdoor is typically fast out of a recession due to its low entry cost and wide range of available products, says Initiative. Revenues are expected to rise by 5.4% next year, although product innovation is unlikely as contractors are reluctant to spend in a market displaying unpredictable and potentially unsustainable growth, says the report.
Cinema spend should continue to grow strongly as a broader range of advertisers start to use the medium and an increased number of packages are made available.
Initiative Media: 020 7663 7000 www.initiativemedia.com
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