Record sales quarter as banks drive market

Banks increased their advertising spend by an unprecedented 42 per cent in the March to May period, fuelling a record quarter for many media owners.

Banks increased their advertising spend by an unprecedented 42 per

cent in the March to May period, fuelling a record quarter for many

media owners.



Total adspend for the period was pounds 2.2 billion, up 13.2 per cent on

last year, according to a report released by CIA MediaLab.



David Fletcher, head of CIA MediaLab, said banks, dotcoms and other

growing areas of the economy were driving the market.



Barclays spent pounds 12 million on a corporate push and there were huge

brand campaigns for NatWest and Nationwide. Nationwide’s adspend

increased sevenfold, and Lloyds TSB spent a record pounds 8.5

million.



Fletcher said television had done particularly well out of the financial

campaigns as there had been a swing away from press advertising.



Freeserve’s pounds 7.6 million spend contributed to a 72 per cent growth

in the online category. The biggest entrant in the dotcom market was

TravelStore.com, with a pounds 5.5 million budget.



Fletcher said the amount of money in the market had driven media

inflation and this had resulted in fmcg brands cutting their spend.

Exceptions included the drinks category, which enjoyed growth thanks to

energy drink launches.



Food remained the biggest category for TV.



The motors sector was quiet compared with last year. Fletcher put this

down to March car registrations.



Outdoor grew by 40 per cent (AC Nielsen MMS), benefiting from large

amounts of cash from the home entertainment and utilities

categories.



Competition in the entertainment market was fierce as video companies

such as Blockbuster and Warner tried to fight off Sky and their

multi-channel rivals. Buena Vista and Blockbuster spent pounds 5 million

keeping Sky at bay.



Press had a mixed period with 7 per cent growth. Radio grew at a similar

level, benefiting from intense competition in the finance, computing and

telecoms markets.



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