UK adspend shatters pounds 15bn barrier

UK advertising expenditure has burst through the pounds 15 billion barrier for the first time, according to the latest figures from the Advertising Association.

UK advertising expenditure has burst through the pounds 15 billion

barrier for the first time, according to the latest figures from the

Advertising Association.



Adspend rose by nearly pounds 1 billion in 1999, a hike of more than 6

per cent in 12 months.



But the AA is predicting that, far from slowing down, expenditure across

the board is set to grow by another 6 per cent in 2000.



Direct mail, cinema and radio were the fastest growing sectors, with

cinema showing the steepest rise in adspend.



The medium’s adspend grew 26.8 per cent on 1998’s figure of pounds 97

million to reach pounds 123 million.



Christine Costello, managing director of Pearl & Dean, said cinema’s

success was due to a ’phenomenal’ rise in box-office admissions last

year, which attracted a range of advertisers such as car manufacturer

Peugeot.



’Thanks to films like Notting Hill and A Bug’s Life, we had the highest

level of admissions for 25 years,’ said Costello. ’Car advertising was a

big growth area and the core audience of 15- to 34-year-olds appealed to

dotcoms such as Yahoo!.’



The second largest increase in adspend was on direct mail, with a 12.6

per cent hike. This was closely followed by radio, which recorded a rise

in spend of 12.1 per cent.



Jonathan Gillespie, head of radio at OMD UK, said internet start-ups had

helped lift radio’s share of marketing budgets, but felt the rise was

mainly because radio has finally won the confidence of advertisers.



’Advertisers used to try radio and then leave it, but we’re now finding

the medium has a central part to play in campaigns,’ Gillespie said.



’Radio found it hard to prove itself, so it was always a leap of faith

for advertisers, but the medium has turned that corner,’ he added.



TV expenditure rose from pounds 4.03 billion to pounds 4.32 billion, and

press advertising, including regional and national newspapers as well as

magazines, increased from pounds 7.53 billion to pounds 7.83

billion.



This was the eighth consecutive year of growth for the advertising

industry.



Full details of the figures will appear in The Advertising Statistics

Yearbook 2000, which is available from Oxfordshire-based NTC

Publications, priced pounds 125.



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