Industry set for adspend boost

Adspend in the year 2000 is predicted to rise by 5 per cent with dot.com, radio and digital TV sales teams upping their share, according to forecasts from CIA MediaLab.

Adspend in the year 2000 is predicted to rise by 5 per cent with

dot.com, radio and digital TV sales teams upping their share, according

to forecasts from CIA MediaLab.



Inflation in the cost of space or airtime is expected to remain

unchanged at around 3.7 per cent, with a 0.5 per cent increase in

audience.



The biggest increase in spend is anticipated in the new-media sector,

where total yearly spend will more than double, rising from present

levels of around pounds 46 million to more than pounds 95 million.



’This is a conservative figure,’ said Ben Christie, head of New PHD’s

new-media consultancy PHDiQ. ’I reckon last year’s spend was about

pounds 52 million and this is only the visible banner advertising

market. The bulk of deals are done in content trading or

distribution.’



Christie predicted that advertisers will begin moving away from the

dot.com media campaign formula of radio supported by fly posting and

Adshells.



’It’s become too cluttered,’ he said. ’We’ll see more tactical media

stunts and PR this year.’



The rapid take-up of digital set-top boxes will be good news for Sky and

ONdigital, and Channel 5 will increase its share of adspend. However ITV

will suffer from their success and is expected to take less than 60 per

cent of TV revenue for the first time.



Audiences for classified and national press ads are predicted to decline

in 2000 as more people turn to the net for their news, but display

adspend will rise, fuelled by the need for dot.coms to promote

themselves.



Radio should enjoy a 12 per cent hike in adspend, taking it over the

pounds 500 million mark. Mike Hope-Milne, head of radio at MediaCom TMB,

said: ’Last year, dot.com businesses went mad for radio and this will

continue.



We will also hear more car advertising on the radio when UK car prices

fall in line with those on the Continent.



’More financial advertisers will also come on board when the ’wealth

warnings’ at the end of ads are dropped.’



The regional press, consumer magazine and outdoor markets are expected

to remain healthy, if static.



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