New study shows decline in DM

Compiled by the media monitoring service Thomson Intermedia, the barometer showed that direct mail has fallen from 15 per cent to 13 per cent while TV advertising increased from 35 per cent to 37 per cent of total adspend.

The latter was boosted by multichannel TV spend almost doubling over recent years, from 13.3 per cent in 2000 to 22.3 per cent in 2004.

The barometer also predicted that internet adspend will overtake radio within a few years and reveals that internet adspend increased by 11 per cent between 2003 and 2004.

Analysis on sector spend showed that retail, finance, FMCG, entertainment, automotive and IT/communications accounted for 76 per cent of the total marketing expenditure monitored.

The barometer calculated the UK's ad industry to be worth £10.5 billion, and it analysed how that figure breaks down.

Michael Higgins, a partner at KPMG, said: "Despite its size, the UK advertising industry suffers from a lack of data clarity and comparability. It is also an industry that is dominated by 'art' and not 'science'.

"Over time, this new barometer will help to improve the reporting of advertising industry data, making the industry more transparent and efficient."

The new barometer, which will be published every six months, is compiled using information collected by Thomson Intermedia.

It joins existing industry barometers such as the Advertising Association's quarterly adspend figures, the IPA's Bellwether Report (a survey of 300 UK clients) and data from Nielsen Media Research, Thomson Intermedia's long-established rival in the sector.

HOW SIX SECTORS BREAK DOWN THEIR SPEND

Sector Press (%) TV (%) Direct (%) Outdoor (%)

Retail 38 29 12 3

Finance 22 23 38 2

Entertainment 22 43 9 13

FMCG 13 67 1 12

Automotive 46 35 2 7

IT/communications 34 31 5 10

Source: Thomson Intermedia.

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1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).