INSIGHTanalysis: Media Healthcheck – December 2005
In December a number of key industry bodies released forecasts for the state of the advertising industry over the next few years, with the Advertising Association (AA) getting the ball rolling, predicting a substantial rise of up to 43% in advertising expenditure between now and 2017.
Media agency, ZenithOptimedia, also predicted steady growth in world-wide advertising markets, forecasting global spend to rise by 4.8% in 2005, a figure broadly in line with previous estimates of 5%, while 2006 will become a “touch firmer” at 5.9%, up from predictions of 5.8% this time last year.
The company projects ad expenditure in 2007 to grow by 5.7%, down slightly on last year’s estimates of 5.8%, while it’s opening forecast for global ad spend in 2008 is 6% growth (see ZenithOptimedia Forecasts Steady Adspend Growth).
Universal McCann also put its estimates into the pot, forecasting global advertising growth of 6% in 2005, predicting world-wide adspend to reach $569.8 billion by the end of 2005 (see McCann Expects US 2005 Adspend To Rise By 4.6%).
New figures from the AA, revealed ad expenditure in the UK to have totalled £3,779 million in the third quarter of 2005, representing a marginal increase of 0.1% year on year (see Q3 Ad Revenues See Marginal Increase).
Elsewhere, December saw key issues surrounding the impact and future of digital radio raised, with key industry figures discussing the sector at the MediaTel INSIGHT Digital Radio and Beyond Seminar.
Speaking at the seminar, Ralph Bernard and Simon Cole cheif executives, of GCap Media and UBC Media, urged delegates to focus on the industry’s digital future rather than being distracted by the current “fight” over analogue audiences (see Radio Heads Urge Focus On Digital Future).
Bernard also voiced his concerns over Ofcom offering additional national digital radio spectrum (see Ofcom Announces New Spectrum Plans), branding the action as “illegal” and threatening to take legal action against the government body.
The GCap Media chief executive said: “We built the national network of transmitters, and in return we were led to believe we would be the only player in the market for a substantial period. We trusted the figure of authority, and now after creating the market, Johnny Come-latelys want to fill their boots. It’s not right, it’s not fair and I think it is illegal (see New Multiplexes Are Illegal – Bernard).”
Meanwhile, turning to digital television, Ofcom released figures showing that 65.9% of UK households now watch digital television, up from 63.0% in the previous quarter (see Ofcom Estimates Show 65.9% Of Britain With Digital TV).
According to Ofcom’s figures, the total number of households viewing digital television grew by more than 760,000 year on year to almost 16.5 million. In total there are now more than 6.3 million free-to-view digital households (Freeview homes plus free-to-view satellite homes), leaving 10.2 million subscription customers.