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Growth in DM rises to 4.2% for beginning of 2004

LONDON - Growth in direct marketing has failed to keep pace with the advertising industry as a whole during the first quarter of the year, with spend on the medium up by 4.2% compared with an across-the-board rise of 4.8%.

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Spend on direct mail for the first three months of the year was £686m, making it the third-biggest medium, after regional newspapers and television advertising.

While DM saw growth in real terms of 2.9%, it lagged behind the advertising industry as a whole, which was bolstered by radio and poster, the two fastest-growing media. Outdoor advertising increased by 9.1% to £185m, while radio was up by 8.3% to £133m.

Television saw an increase in adspend of 3.7% to £880m for the first three months of the year. There were across-the-board rises in press and magazine ads, with regional newspapers up 7.2% to £796m and national newspaper advertising showing a small increase of 3.2%.

Even business magazines, which have seen advertising revenues hard hit by the recession and have been slower to recover than other sectors, posted a rise of 1% in advertising revenue to £227m. However, this represents a 0.3% decline in constant currency terms.

The only sector to see a drop was cinema, down by 2.9% to £38m.

The figures have been compiled by the Advertising Association, along with the World Advertising Research Centre. A full copy of the report is available from WARC.

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