The increase means that nearly 拢19bn was spent in the UK on advertising during last year, although this was only up from 拢18.5bn during 2004.
Without taking into account inflation, the increase was actually 2.6%, but when inflation is added the rise equated to less than 1%, a warning sign for the UK advertising industry.
The press sector, including national and regional titles, accounted for the largest share of total advertising expenditure with 45.3% of spend in the UK, with television taking second place on 25.4%, followed by direct mail taking 12.5% of the cake, internet taking 7.2%, outdoor achieving 5.5%, radio on 3.1% and cinema accounting for 1.0% of total advertising budgets.
Looking solely at display advertising, and not including the contribution made by classified advertising, television was the largest medium accounting for a 35.2% share of such expenditure, with the press taking second place on 31.8%, followed by direct mail on 17.3%, outdoor on 7.6%, radio taking 4.2%, internet with 2.5% and cinema on 1.4%.
Advertising expenditure in the press sector as a whole has declined by 1.8% in 2005, with national newspapers, regional and business magazines all recording falls in spend following general growth figures in 2004.
However, consumer magazines were up rising by 1.0% to reach 拢827m and television rose 1.5%, taking 拢4.8bn of advertiser's budgets. Spend in outdoor also rose by or by 3.7% to reach 拢1bn.
The internet recorded the largest gain rising by 62.3%, taking 拢1.3bn of advertisers budgets in 2005, up from 拢824m the previous year.
All figures include production costs as well as media spend.
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