UK advertising spending falls by 4.3 per cent

Jun 30 2009 by Graeme Brown, Birmingham Post

New research shows that spending on advertising dropped dramatically last year as the economy faltered.

Expenditure fell to £18.6 billion in 2008, a four per cent drop compared with the previous year, which followed growth of 4.3 per cent in 2006.

The press remained the most popular medium for advertisers, taking 37 per cent of the money spent on ads, but spending in the sector was down almost 12 per cent.

Television and radio also suffered, with only the internet and the cinema recording growth, of 19 per cent and one per cent respectively, according to the Advertising Association’s Advertising Statistics Yearbook.

After the press and TV, which has a 24 per cent share of spending, the internet is now the third largest advertising medium with just over 19 per cent.

Guy Phillips, chief executive of the Internet Advertising Bureau (IAA), the trade body for digital marketing, said online ads were attractive because their impact could be measured easily.

“Online performed well last year, particularly considering that the second half was very hard for the overall advertising market,” he said.

“This is the first time there has been a recession while the internet existed and advertisers are moving their money into media they can easily measure.

“So while traditional media might be declining, online grew last year.”

But he warned: “I think this year is going to be pretty tough all round.”