Adjusted for inflation, the rise is only 2.3%, and for the 2002 full year total advertising grew by only 0.8% -- a fall of 0.8% in real terms.
The figures were published by the Advertising Association and compiled by the World Advertising Research Center. It covers national and regional newspapers, consumer and business magazines, television, radio, outdoor and direct mail.
Business magazines were hardest hit, in line with other international markets, falling by 5% to 拢278m for the quarter. Outdoor advertising was the biggest riser, up by 15.5% to 拢188m, while television turned its fortunes around to rise by 9.8%, with just over 拢1bn spent during the quarter.
Aegis Group, which owns the Carat media-buying network, gave more encouragement this morning when it said it expected the European ad market to start growing again in 2003, as it posted a 13% rise in underlying annual profit.
Aegis said in a statement that its profit before tax and exceptional items rose to 拢71.4m in 2002, on revenues up 11.9% to 拢592m.
Despite the good news, more cautious industry speculators are predicting that a true advertising recovery will have to wait until 2004 -- especially as the prospect of a war with Iraq becomes ever more likely.
Sir Martin Sorrell, chairman and CEO of the WPP Group, has said that 2004 should bring a sold upswing in advertising, with presidential elections in the US, the Olympics in Athens, and the European football championships to be held in Portugal.
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