Radio the biggest loser as online adspend soars by 73%

by Sarah Woods, Brand Republic 20-Mar-06, 09:00

LONDON – Spending on advertising in the UK increased by 2.1% in 2005, compared with a 6% rise the previous year, with online spend rising by over 70%, according to research published by the Advertising Association.

The internet continued to show its massive capacity for growth with an estimated 73% increase in adspend to £1.1bn, outdoor advertising rose by 5.8% and television by 3.6%.

The rise in online advertising is hitting other sectors however. Print press adspend declined by 3%, radio fell 4.5%, cinema decreased by 2.6% and direct mail by 3.9% between 2004 and 2005.

The drop off in total adspend over the past year is blamed on a slackening in consumer spending and other adverse economic circumstances.

The media covered by the survey include national and regional newspapers, consumer and business magazines, television, radio, outdoor, cinema, internet and direct mail.

The total figure excludes advertising expenditure in directories for which annual data will be available later in the year.

Exact internet figures will be published shortly by the Internet Advertising Bureau.

Total advertising expenditure in the UK for 2005, including directories and production costs, will be published in June in the AA's Advertising Statistics Yearbook 2006.

The equivalent total for 2004, published in the 2005 edition of the yearbook, was £18.3bn.

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