June 2007
Internet adspend continues to rocket
UK advertisers spent over £4.2bn in the first quarter of 2007, a year-on-year increase of 3% according to the Advertising Association. This report is supported by the optimistic picture painted at the World Association of Newspapers conference in South Africa which presented an encouraging picture of worldwide growth in circulation and revenues.
The Quarterly Survey of Advertising Expenditure revealed that all UK media, apart from online, outdoor and cinema, experienced a downturn.
TV advertising continued to fall from favour with advertisers, with expenditure down 0.8% to £962m, but by far the hardest hit was the business magazine sector, with adspend down 6.6% to £203m. This was followed by regional newspapers, which fell 3.8% to £705m; national papers, which experienced a decline of 1.8% to £492m; and consumer magazines, which fell 1.4% to £188m. Radio adspend was down 1.8% to £127m and direct mail fell 3.6% to £615m.
In total, press advertising fell 3.3% to £1.59bn, with advertisers spending 4.8% less on classified and 2.1% less on display.
On the upside, Internet advertising grew by a massive 42% to £648m. Cinema advertising expenditure grew nearly 10% to £30m and outdoor by 7.7% to £237m.