Media News


A Look at the Latest Advertising Association Expenditure Report - 27/04/2010

The UK advertising industry will report a faster than expected recovery in 2010 according to the latest Advertising Association (AA) and Warc Expenditure Report. Total advertising spend fell by 12% in 2009, the biggest fall since measurement began in 1982. The data is now trending towards a return to modest growth in Q1 2010 – two quarters earlier than previously expected. AA/Warc has also upgraded its full-year 2010 forecast from 0.4% growth to 2.3%.
 
The report forecasts suggest that the UK advertising industry will grow particularly strongly in Q2 2010 (+3.6% yoy). Television advertising, boosted by the World Cup, is predicted to perform strongly having returned to growth in Q4 2009 and advertising on-line will continue to grow.

Significant trends in advertising spend in 2009 included:

  • Cinema and internet advertising bucked the trend for overall decline, with each increasing spend by 6%
  • Press advertising was hit hardest, down 23% on the previous year
  • Recruitment advertising fell 42% yoy with regional newspapers badly hit
  • Business magazines saw display revenues drop by almost 30%

Within the overall 2010 adspend figure, display advertising is forecast to account for 10.4bn, with classified advertising on £3.9bn and recruitment advertising on £600m. Adspend budgets will jump by a further 5.1% in 2011 to £15.6bn.

According to the figures, online will enjoy growth of 7.9% in 2010 and 9.2% in 2011. The web is also set to take almost two thirds of classified revenues by the close of this year. UK TV advertising will experience improvements of 3.7% in both 2010 and 2011.

Source: AA/WARC

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