Only national press and outdoor recorded growth among other sectors, according to figures from Nielsen Media Research obtained by Media Week.
Official figures from the Advertising Association do not come out until the summer, but Nielsen estimates — regarded as one of the main gauges of the health of the industry — show that display spending on the internet, excluding search, rose to more than £417m across the year, up 25%.
Of other sectors, only national newspapers (up 2.12% to £1.56bn) and outdoor (up 1.01% to £751m) recorded any rise whatsoever in 2006. The worst performing sector was regional press, down more than 11% year on year to £618m.
The TV market slumped from more than £4bn in 2005 to £3.8bn in 2006, a fall of 5.98%. Although the figure was not quite as bad as some in TV were predicting, the Nielsen figures illustrate the enormous gulf between the rapid increase in online spending and the struggle for traditional media just to tread water.
Magazines saw their revenue fall by 3.62%, cinema was down 2.6% and radio fell by 0.84%.
Adam Smith, futures director at Group M, said the media operator estimated there had been zero overall growth in the market in 2006, with online the only big winner.
“The big question, which at the moment we can’t answer, is whether the money in online is migrating from other media, or whether it is new money.
“The audiences that traditional media seem to be losing are the younger audiences, which is where advertisers are looking to spend more money online. It’s reasonable to infer the money is migrating.”
In October, PricewaterhouseCoopers recorded six-monthly figures showing the internet sector was up 40.3% year on year, including search. However, online still had only a 4% share of display in 2006, according to NMR, with TV enjoying a 34% share.
Thomson Intermedia released its list of the top 10 advertisers of 2006 yesterday, with the top two, Procter & Gamble and BSkyB, remaining unchanged. However, according to Thomson, the COI overtook Unilever as the third biggest spender, despite spending slightly less year on year.
Retail remains the biggest spending sector, ahead of finance, entertainment and FMCG.
Official figures from the Advertising Association do not come out until the summer, but Nielsen estimates — regarded as one of the main gauges of the health of the industry — show that display spending on the internet, excluding search, rose to more than £417m across the year, up 25%.
Of other sectors, only national newspapers (up 2.12% to £1.56bn) and outdoor (up 1.01% to £751m) recorded any rise whatsoever in 2006. The worst performing sector was regional press, down more than 11% year on year to £618m.
The TV market slumped from more than £4bn in 2005 to £3.8bn in 2006, a fall of 5.98%. Although the figure was not quite as bad as some in TV were predicting, the Nielsen figures illustrate the enormous gulf between the rapid increase in online spending and the struggle for traditional media just to tread water.
Magazines saw their revenue fall by 3.62%, cinema was down 2.6% and radio fell by 0.84%.
Adam Smith, futures director at Group M, said the media operator estimated there had been zero overall growth in the market in 2006, with online the only big winner.
“The big question, which at the moment we can’t answer, is whether the money in online is migrating from other media, or whether it is new money.
“The audiences that traditional media seem to be losing are the younger audiences, which is where advertisers are looking to spend more money online. It’s reasonable to infer the money is migrating.”
In October, PricewaterhouseCoopers recorded six-monthly figures showing the internet sector was up 40.3% year on year, including search. However, online still had only a 4% share of display in 2006, according to NMR, with TV enjoying a 34% share.
Thomson Intermedia released its list of the top 10 advertisers of 2006 yesterday, with the top two, Procter & Gamble and BSkyB, remaining unchanged. However, according to Thomson, the COI overtook Unilever as the third biggest spender, despite spending slightly less year on year.
Retail remains the biggest spending sector, ahead of finance, entertainment and FMCG.
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