Adspend in Britain Nuzzled £19 Billion in 2005

26 June 2006

Advertising expenditure in the United Kingdom rose by 2.6% to almost £19 billion ($34.59bn; €27.62bn) in 2005 when measured at current prices (before adjustment for inflation) according to the Advertising Statistics Yearbook 2006 published today, Monday, by the UK Advertising Association.

This compares with just under £18.5bn in 2004.

Researched and compiled by the World Advertising Research Center, the data indicates a rise in expenditure equivalent to an inflation-adjusted 0.6% increase in real terms.

It represents the fourth consecutive year of positive growth since the advertising recession of 2001. The figure includes production costs as well as media spend.

The press sector accounted for by far the largest share of total advertising expenditure with 45.3% of national spend; television took second place (25.4%), followed by direct mail (12.5%), internet (7.2%), outdoor (5.5%), radio (3.1%) and cinema (1.0%).

Looking solely at display advertising, TV was the largest medium accounting for a 35.2% share of such expenditure, with the press taking second place (31.8%), followed by direct mail (17.3%), outdoor (7.6%), radio (4.2%), internet (2.5%) and cinema (1.4%).

Advertising expenditure in the press sector as a whole declined by 1.8% in 2005 when measured at current prices (or by 3.7% in real terms), with national newspapers, regional newspapers and business magazines all suffering from decreased levels of spend following strong growth in 2004.

Advertising expenditure in directories, however, rose by 5.3% last year amounting to £1,131m when measured at current prices and consumer magazines were also up on this measure, rising by 1.0% to reach £827m.

Advertising expenditure in the television sector increased by 3.6% in 2005 amounting to £4,820m when measured at current prices - a rise of 1.5% in real terms - whilst spend in the outdoor and transport category increased by 5.8% (3.7% in real terms) to reach £1,043m. These two sectors both achieved double-digit growth in the first quarter of 2005.

The internet recorded by far the largest gain in percentage terms in 2005, rising by 65.6% when measured at current prices (62.3% in real terms) to reach £1,366m, up from a revised figure for 2004 of £825m.

Following growth in 2004, advertising expenditure in the cinema and radio sectors fell by 2.1% and 4.5% respectively in 2005 when measured at current prices (or in real terms 4.1% and 6.4%).

Expenditure on direct mail also declined, falling by 3.9% over the course of 2005 as a whole, although positive growth was seen in this sector during the final quarter of last year.

For further information on the complete dataset click here.

Data sourced from Advertising Association (UK); additional content by WARC staff