The boom in dotcom business is expected to catapult UK internet ad
sales ahead of cinema and radio by 2003, according to research by
The agency’s latest report on advertising revenue and inflation across
all media sectors reveals that so far this year, the web has taken three
times as much ad revenue as it had at this point in 1999.
But other sectors are also benefiting from the dotcom explosion.
Optimedia predicts growth in advertising revenues across the board for
the next four years, with internet clients fuelling increased sales in
television, outdoor and radio.
Total revenue from ad sales is tipped to grow by 5 per cent this year to
pounds 9,874 million, with similar rises expected in the next three
The sectors to watch in 2000 are internet (growing by 200 per cent to
pounds 120 million), radio (up 10 per cent to pounds 510 million) and
outdoor (up 8 per cent to pounds 605 million).
TV, which grew by 10 per cent in 1999, is expected to increase 6 per
cent this year to pounds 3,267 million. However, sales growth is
expected to slow down after 2001.
Press is set for more modest growth. Optimedia predicts a 3 per cent
rise in national newspaper ad revenues this year (to pounds 1,912
million) and 2 per cent for the regional press and magazine sectors.
Looking forward, revenue growth is only expected to continue increasing
in magazines and regional papers. Television will drop by 4 per cent in
2001-2 and then by a further 2 per cent in 2003.
National newspapers, cinema and radio revenue increases are expected to
be lower next year, with gains thereafter. Outdoor will remain at 5 per
cent from 2001 and internet growth will decrease to 54 per cent by
The report warns of continuing rampant inflation in radio. The 2000
level of 10 per cent - compared with 11 per cent in 1999 - is based on
increasing demand against a background of low audience gains.
Other high-inflation sectors are television, cinema and outdoor, which
are all running at five per cent. The least inflationary is magazines,
at just 1 per cent.