Retailers increase adspend by 3% despite high street gloom

by Daniel Farey-Jones, Brand Republic 07-Nov-05, 11:00

LONDON - Retailers have upped their adspend by 3% between the second and third quarters of 2005 and remain the biggest spending sector, according to Thomson Intermedia's quarterly Advertising Barometer survey.

Overall, advertisers raised spend by 1% on the second quarter, and 5% on the third quarter of 2004.

The figures go some way towards allaying concerns that retailers would stop advertising in response to consumers tightening their belts. However, they have still spent 8% less than in the same quarter last year.

Automotive clients stood out with a 14% share of adspend during the quarter compared with 12% during 2004. The retail sector's share this quarter was 17% and the finance sector's was 16%.

Adspend in direct mail, cinema and radio dropped from the second quarter. The other sectors -- press, TV, door-drops, outdoor and internet -- saw increased income.

Sarah Jane Thomson, chief executive of Thomson Intermedia, said: "The rapid growth of internet search advertising is clearly boosting a somewhat embattled advertising industry, although not without claiming victims: it looks as though some spend has shifted out of direct mail to fund the growth in internet spend."

Thomson continues to work with auditor KPMG on the barometer following its purchase of media auditor Billetts.

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