Survey: UK DM Expenditures to Shrink in 2005

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Direct mail, business magazines and radio are expected to see ad expenditures shrink in the United Kingdom this year, the UK-based Advertising Association said yesterday.


AA, a federation of 32 trade groups in the UK, publishes a quarterly survey of ad spending compiled by the World Advertising Research Center. In this survey, the association said it reduced its forecast for ad spend growth from the 3.7 percent figure it issued in June to 2.3 percent because of disappointing growth in the UK economy.


Direct mail will fall 3.3 percent, business magazines 2.5 percent and radio 1.5 percent from last year's numbers, according to the data.


However, the Internet will continue its rapid growth, with this year's spending up 40 percent from 2004. Outdoor advertising also is expected to show strong growth, up 7.4 percent from 2004, while cinema advertising is projected to grow 4.9 percent. Television advertising will grow 2.9 percent, national newspapers 0.7 percent and regional newspapers 0.4 percent. Spend in consumer magazines is expected to grow 1 percent.


AA also said growth is expected to accelerate next year, with an increase of 4.4 percent at current prices forecast.


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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