Net to overtake radio and cinema

The boom in dotcom business is expected to catapult UK internet ad sales ahead of cinema and radio by 2003, according to research by Optimedia.

The boom in dotcom business is expected to catapult UK internet ad

sales ahead of cinema and radio by 2003, according to research by

Optimedia.



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

years.



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

2003.



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.



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