Internet adspend set to rise by more than one third in 2005

by Jennifer Whitehead, Brand Republic 05-Apr-05

LONDON - Internet adspend is once again set to see more growth than any other medium this year, with the Advertising Association forecasting a rise of more than a third in real terms.

However, the forecast figure of 33.2% is well behind the growth seen by the industry in 2004, which was up by 44.2% in real terms.

Overall, the AA is forecasting growth of 4.3% in adspend for the year, with all media sectors forecast to rise.

The figure, which compares constant prices, would beat the 4% growth in UK adspend reported by the AA for 2004 -- a figure that was already the strongest rise recorded since 2000.

Television is forecast to rise 4.8%, ahead of last year's growth in real terms of 4%. Outdoor advertising, a star performer last year, is set for another strong year with growth of 6.2%, and radio will see adspend increase by 3.4%.

The figures have been compiled on behalf of the Advertising Association by the World Advertising Research Centre.

Annual % change in advertising expenditure by medium
National newspapers 2.6
Regional newspapers 3.0
Consumer magazines 2.3
Business magazines 1.7
Total press 2.6
- of which display 2.3
- of which classified 2.9
Television 4.8
Radio 3.4
Outdoor 6.2
Cinema 5.8
Internet 33.2
Direct mail 0.9

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.