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UK Adspend Rose 5.6% in 2004, Reports Ad Body

News, 11 July 2005


Advertising expenditure in the United Kingdom rose by 5.6% to £18.4 billion in 2004 (before allowing for inflation), reports the Advertising Association's Advertising Statistics Yearbook 2005, researched and compiled on its behalf by WARC.

Even after allowing for inflation, advertising revenue growth returned a healthy increase of 4.2%, the yearbook reveals.

The publication also tables annual expenditure growth over the past ten years …

UK Advertising Expenditure 1994-2004

       

    Annual % change

    Year
     

    Spend £m

    Current prices

    Constant prices1
    1994 10,136 10.9% 8.8%
    1995 11,026 8.8% 6.0%
    1996 12,080 9.6% 6.9%
    1997 13,340 10.4% 8.5%
    1998 14,415 8.1% 6.4%
    1999 15,412 6.9% 5.5%
    2000 16,987 10.2% 9.3%
    2001 16.537 -2.6% -3.8%
    2002 16,780 1.5% 0.2%
    2003 17,411 3.8% 2.4%
    2004 18,385 5.6% 4.2%
    Note: Constant price data calculated using the Consumer Prices Index
    Source: AA's Advertising Statistics Yearbook 2005
Advertising expenditure has recovered steadily since the decline of 2001, but annual growth rates are still below those of the 1990s.

The press - newspapers, magazines and directories - accounted for by far the largest share of total advertising expenditure (47.5%, including production), with television the second largest medium (25.8%).

These were followed by direct mail (13.4%), outdoor (5.4%), internet (3.6%), radio (3.3%), and cinema (1.0%). The press total is split equally between display and classified advertising.

Within the press sector, advertising expenditure grew fastest in regional newspapers and consumer magazines (by 5.8% and 4.5% respectively in nominal terms, and by 4.4% and 3.1% respectively in real terms).

Television advertising expenditure rose by 5.4% to £4,740 million in nominal terms - an increase in real terms of 4.0%.

Among the other media, outdoor & transport (up 7.8% in nominal terms) and cinema (up 6.7%) showed solid gains, while the growth rate for radio slowed to 3.4% and expenditure on direct mail remained unchanged. Far and away the fastest growing medium, however, was the internet where advertising expenditure rose by 60%.

For further information on the AA's Advertising Statistics Yearbook 2005 click here.

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