UK advertising spend has smashed through the pounds 15 billion
barrier for the first time thanks to the dotcom revolution.
Dotcoms have played a major part in propelling ad expenditure to a
record pounds 15.3 billion last year and growth levels show no sign of
waning, industry analysts say.
The figures released this week by the Advertising Association reveal a
pounds 917 million growth rate - almost a 5 per cent leap in real terms
- over 1998 levels.
As a result, adspend now accounts for its largest share of Gross Value
Added - formerly GDP - at 1.95 per cent.
’The figures are very encouraging,’ Andrew Brown, the AA’s
director-general, said. ’It’s difficult to see any clouds on the
Cinema was one of the fastest growing sectors, with spend rising by
pounds 26 million from 1998 to pounds 123 million last year. Radio also
performed well, with expenditure growing by pounds 56 million to pounds
516 million over the same period.
Direct mail boasted an increased spend of pounds 210 million to pounds
The AA is predicting that growth levels will be sustained throughout
’Not only is the activity of dotcom companies having an effect but it is
bolstering the success of traditional media which is to everybody’s
benefit,’ Brown added.