UK ad spend declines 4%

Advertising in the UK suffered a 4% decline in 2008 to 18.6bn, according to the latest figures.

Statistics from the Advertising Association (AA) and the World Advertising Research Center (WARC) showed the 2008 decline compared to a 4.3% growth in 2007, with press advertising down some 11.8%, taking its overall share to 36.6%.

It remained the largest advertising sector, but the overall recession and its effects on the property, recruitment and motor industries along with the flight to online of classified advertising all took their toll, particularly hurting the regional press.

"The second part of the year saw a downturn in recruitment advertising especially in the regional press," said WARC research director Colin Macleod. "When unemployment is high you don't need to advertise so much... and online recruitment is generally cheaper than in print."

He said that companies were also moving towards posting vacancies on corporate websites rather than advertising.

He described the property market as "more or less collapsed" with "property advertising in the regional press down somewhere between 40 and 50%".

Direct mail had an 11% share (£2.04bn), down 6% year-on-year, although better use of data meant that campaigns have been more targeted. Macleod said that direct mail still represents an attractive platform for advertisers. "In a downturn, advertisers will look more towards measurable forms of advertising," he said.

Outdoor and transport advertising dropped 3.8% to a 5% market share. Macleod said: "Apart from the internet, outdoor advertising has been one of the fastest growing mediums over the last couple of years – it's down to the growth in the leisure industry, with more people going out."

He said that the recession has put a dent in that growth but that "things will pick up".

Online advertising was the third largest sector in 2008, growing 19.1% to take a 19.3% market share, behind television at 24%.

The outlook for 2009 is a 10-15% reduction in advertising spend, although most of that decline is in the first half of the year, according to Macleod.