Media Mystics Predict 4.3% Rise in UK Adspend for 2005

20 May 2005

The May issue of AdStats, a periodic report produced by WPP's Mediaedge:cia and MediaLab (in which Interpublic Group has a 20% stake), forecasts that UK advertising revenues will rise this year by 4.3% - an increase of 0.3 percentage points on 2004.

The report includes internet expenditure for the first time, set to rise by a massive 36% according to Adstats. The surge is triggered by the near-exponential take up of broadband by enthusiastic online Britons, 49% of whom have converted to the high speed service - with a further 40% saying they intend to do so later this year.

Second - but trailing well behind in the growth stakes - is the outdoor and transport sector, set to expand by 8.2%.

Adstats, which bases its predictions on data supplied by the Advertising Association and the World Advertising Research Center, ranks growth by other media sectors as follows …

  • Cinema advertising occupies third place, with income up by 7.7% year-on-year.

  • TV, the largest sector, having registered a startling 12% surge in Q1, will decelerate over the remainder of the year to record annual growth of 6.7%.

  • Radio will also grow, albeit by a more sedate 5.3%.

  • Consumer magazines will grow by 4.2%.

    Business and professional magazines will continue to recover and gain 3.6%.

  • Regional newspapers will grow 4.9%, marginally ahead of the 4.5% rise predicted for the nationals.
Adstats also reports the advancing broadband brigade to be avid online buyers. Citing data from Continental Research, the report reveals "that broadband users are more likely to buy virtually every category of goods online than other internet users and also to perform a wide range of tasks - from banking to phoning via VolP".

Data sourced from Media Week (UK); additional content by WARC staff