UK Advertising on Plateau in 2002: Advertising Association

08 July 2003

Although British advertising expenditure fell in the first half of 2002, it recovered strongly in H2, reports the Advertising Association’s Advertising Statistics Yearbook published today (Tuesday).

For the year as a whole nominal expenditure (before adjustment for inflation) rose by 1.2% – in real terms equating to a marginal year-on-year decline of 0.4%. At the beginning of the year the market was still coming to terms with the fallout from the terrorist attacks in the US, weakness in the telecommunications and financial sectors resulting from the collapse of the technology boom, and the general economic recession. However, the soccer World Cup provided much-needed impetus and expenditure began trending upwards from the second quarter.

The respective fortunes of the media mix in 2002 were …

Historically the first medium to recover after a downturn, TV led the way: expenditure turned sharply positive between April and June, boosted by extra spending associated with the World Cup. Over the year as a whole, television adspend rose to £4,326m ($7,167.63m; €6,316.22m) from a 2001 total of £4,147m.

Press and Magazines
The sector experienced sharply contrasting fortunes: quality newspapers and business and professional publications continued to suffer from the effects of recession. Advertising expenditure in quality nationals dropped from £1,028 million in 2001, to £921 million last year and spend in business and professional magazines fell by £114 million, to £1,088 million. Advertising in regional newspapers and consumer magazines fared rather better. Spend in the regional press grew by £36m, while consumer magazine advertising increased to £785 million, from £779 million in 2001.

Outdoor / Cinema / Direct Mail
Outdoor advertising expenditure increased by £14m and radio advertising spend rose marginally, by £4m. There was a second consecutive year of strong growth for cinema advertising – expenditure jumped £16 million to £180 million, as admissions hit a thirty-year high. Expenditure on direct mail advertising remained robust, although the overall growth rate was the lowest since 1998.

The return of major advertisers to the web, after suffering disenchantment during the dotcom boom and bust, helped on-line advertising expenditure expand by £31m in 2002 and it now accounts for a slightly larger market share than cinema advertising.

The full report is available from WARC.

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