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