Online advertising is set to show by far the strongest growth for the year, according to the report. Other sectors set to perform well are radio and poster advertising, up by 7.8% and 8.7% respectively.
Regional newspapers will also see strong growth, according to estimates, rising by 5.9%.
The AA has included internet advertising for the first time, along with cinema and direct mail. However, its 4.8% predicted growth rate for overall adspend in the UK does not include the three new media. Cinema is the only medium expected to see a fall, down by 1.4%, while direct mail is set to rise by 4.1%.
The AA said: "The recovery that began in the fourth quarter of 2003 has continued into the first quarter 2004, with total advertising expenditure rising 3.5% year-on-year at constant prices."
The figures are researched and compiled by the World Advertising Research Centre.
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