UK adspend growth set to defy quadrennial effect with 4.3% rise

LONDON - UK adspend is set to grow this year by even more than in 2004, with the Advertising Association forecasting a rise of 4.3% in 2005.

The figure, which compares constant prices, would beat the 4% growth in UK adspend reported by the AA for 2004 -- a figure that was already the strongest rise recorded since 2000.

Furthermore, the AA says that all media sectors are forecast to record real growth. Internet advertising once again looks to show the biggest increase, with growth of 33.2% forecast. But traditional media is also set for a good year, including television, which is forecast to rise 4.8%, ahead of last year's growth in real terms of 4%.

Outdoor advertising, a star performer last year, is set for another strong year with growth of 6.2%, and radio will see adspend increase by 3.4%.

While many industry pundits are forecasting slower growth in global ad spend for 2005, the UK is not affected to such a great extent by the major driver in growth, the Olympic games.

Research has revealed that UK marketers are among the least interested in the event in the world, dedicating only 3% of marketing spend to Olympic-related efforts, compared with a figure of 70% in sports-mad Australia.

The figures have been compiled on behalf of the Advertising Association by the World Advertising Research Centre.

Annual % change in advertising expenditure by medium
National newspapers 2.6
Regional newspapers 3.0
Consumer magazines 2.3
Business magazines 1.7
Total press 2.6
 - of which display 2.3
 - of which classified 2.9
Television 4.8
Radio 3.4
Outdoor 6.2
Cinema 5.8
Internet 33.2
Direct mail 0.9

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