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