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Digital to boost UK ad market to £17.7bn by 2015

14th July 2011, marketingweek.co.uk

The value of the UK advertising market is set to increase by 4.8% in the next four years to £17.7bn as brands pour spend into online marketing to meet growing consumer demand for digital media.

PwC says internet advertising is projected to rise by 11.2% between now and 2015, the only segment of the UK market set for double digit growth, according to its Global Entertainment and Media Outlook report.

Search advertising has until now been the principal driver of online advertising, but the report adds that this is expected to change in 2012 when advertisers will put more spend into social networking sites and classified advertising as the economy recovers.

Phil Stokes, head of entertainment and media at PwC, says: "With advertising revenues returning to pre-recession levels, the advertising pound is being spent in many new and different ways.

"Product placement, sophisticated social media campaigns and internet advertising are all becoming part of truly multimedia campaigns for advertisers who are themselves increasingly involved in a dynamic conversation with their customers."

UK consumer spending on media and entertainment in the period is set to grow at a slower rate, at a rise of 2.7% to reach £32.7bn, with a further £9.2bn of spending on internet access to media.

Reader the full article here.

ABC July - Dec 2010 figures

ABC, the body that independently verifies and reports on media performance, has released the latest figures for the regional newspaper industry, and I'm delighted to announce that our daily titles are amongst the top performing in our industry across the UK.

Leading the field, the Liverpool Echo has shown a dramatic positive swing in circulation reducing annual decline in circulation from 9.47% in 2009, to just 1.49% in 2010. This is an incredible result, when you add the stunning increase in the Echo's online audience, which tops an average of 1m users per month.

Although officially the Liverpool Echo sits at 5th in the overall table, it is in fact the biggest single edition daily newspaper in the UK, which is a fantastic position to be in and one we intend to hold going forward.

We've also seen more excellent results for our key daily titles across the North West, with the Daily Post in North Wales achieving -2.8%, the Huddersfield Examiner achieving -3.5% and the Liverpool Daily Post seeing a positive swing, reducing its decline by 8%

These successes are testament to the way our whole business is working together to deliver our strategy. The keys to our audience success is in our abilities to produce first class content that our readers and advertisers want, in getting the products into the hands of our readers, and in promoting our brands in our communities.

As a team, we recognise that we need the expertise from every department in our business to succeed, and I'd like to thank each and every one of you for your contribution to these fantastic results, which we should all be extremely proud of.

Warren Butcher
Managing Director
Trinity Mirror North West and North Wales

More information:

Who are ABC?

Owned by the media industry, ABC independently verifies and reports on media performance, providing a major trading currency for media owners and buyers across print, events, digital and evolving platforms.

What does ABC measure?

ABC provides detailed circulation, distribution, attendance, traffic and related data across a broad range of media platforms including:

• National, regional and free newspapers
• Consumer and B2B magazines
• Consumer and trade exhibitions
• Digital media such as web, email, video and audio, podcasts, databases, directories, adserving etc.

All ABC data is prepared to independent, industry-agreed standards. This provides comparability, trust and facilitates efficient trading.

ABC has two roles within the media industry: Firstly it sets and maintains the Reporting Standards via the coordination of the Reporting Standards Groups. Secondly it audits media owners' claims to check that the data is compliant to these industry-agreed standards.

The Reporting Standards are the industry-agreed rules by which ABC data is prepared and reported by media owners.

Who owns ABC?

ABC is run by the media industry. It is governed by a Board of representatives from advertisers, media agencies, media owners and trade bodies. The ABC Board makes decisions on how ABC is run.

ABC is a non-profit distributing organisation. All profits are invested back into the business for the benefit of the industry.

ABCe

ABCe certifies digital media such as web traffic and downloads. ABCe audits these and evolving platforms to ensure they conform to industry-agreed standards. These standards and proposed changes are agreed by JICWEBS (Joint Industry Committee for Web Standards, www.jicwebs.org).

Print is most efficient medium for FMCG advertisers

15th November 2010, www.mediaweek.co.uk

Print and outdoor are the most efficient media for FMCG advertisers, according to research from Clear Channel Outdoor and Brand Science, the Omnicom Media Group research division.

Last week Sally Dickerson, global director at Brand Science, presented the most recent econometrics research at Clear Channel Outdoor's Ideas Seminar to more than 150 planners and buyers from agencies and specialists.

Print generates £1.47 incremental sales revenue for each £1 of media and production costs for FMCG advertisers. Outdoor media generates £1.09, radio 89p, TV 80p and online 66p.

For FMCG advertisers, the return on investment for outdoor increases as outdoor's share increases. If outdoor takes an above median share of spend it generates incremental sales of £1.33 compared with just 30p for a below median share.

Print is also the most efficient medium for telecoms advertisers, delivering incremental sales of £11.31 for each £1 of media and production cost. Outdoor is the second most efficient delivering a return of £6.53.

Brand Science uses more than 750 econometrics studies to calculate the incremental revenue delivered by different types of campaign and the best media mix for different types of advertisers.

The research found that outdoor is the most efficient medium for advertising newspapers and magazines. Outdoor delivers £1.29 of incremental sales revenue for each £1 of media and production cost.

Other media are less efficient for newspapers and magazine advertisers. TV is the second most efficient with 77p of incremental sales revenue for each £1 of media and production cost, print and radio generate 50p and online 39p.

Radio is the most efficient medium for retail and travel advertisers, delivering incremental sales revenue of £6.10 and £7.84 for each £1 of media and production cost respectively.

The most efficient medium for personal finance brands is online. It delivers £2.52 incremental sales revenue for each £1 of media and production cost, shortly followed by print with a return of £2.42.

Dickerson said: "Outdoor is continuing to perform very well. It's a very friendly medium and its effect is there to be seen. It's also seen in the boost to other media and the overall campaign effect."

UK advertising will return to growth in first quarter

22nd April 2010, brandrepublic.com

The UK advertising industry is set to return to growth sooner than expected, according to new figures released today by the Advertising Association (AA) and research specialists Warc.

The AA had previously predicted that the industry would return to growth in Q3 this year, with spend rising 2.8%.

However, research suggests that modest growth is likely to be seen in Q1 and estimates that the industry will see a 3.6% year-on-year increase in Q2.

The report predicts greater growth in UK advertising across 2010, with the AA and Warc upgrading its full-year 2010 forecast from 0.4% growth to 2.3%.

Total advertising spend fell by 12% in 2009, the biggest fall since measurement began in 1982. Only cinema and internet advertising, both up 6% year-on-year respectively, bucked the downturn in 2009, with press advertising down 23% on 2008.

"It won't surprise anybody that the industry has had a tough year. But as confidence returns, it is clear that forward-thinking organisations are stealing a march on their rivals by investing in advertising," says Tim Lefroy, chief executive at the AA.

Mediamix is still Sefton's number 1 newspaper group!

At Trinity Mirror, we have been managing our cost base carefully throughout the last eighteen months, however early indications show the economic outlook for 2010 is optimistic and to reflect this we've made some positive changes to our coverage of Sefton.

Week commencing January 11th, we extended the distribution of our free Bootle Times title to cover an additional 6,000 homes in the Litherland area. This means that we now distribute in excess of 30,000 copies in South Sefton via our flagship paid product, the Crosby Herald, plus our market leading Bootle Times free product.

I am also delighted to confirm that we have resumed our free door to door coverage of the Maghull area with the popular Maghull and Aintree Star which is now distributed to almost 16,000 households.

Feedback we've received from both readers and advertisers in this area confirms how greatly they rely on their local newspaper for news, information and advertising and we are very happy to be able to provide a valued service to the entire Maghull community once again.

These two key changes mean that our overall coverage of Sefton has increased from around 102,000 paid and free copies, to over 118,000 copies, i.e an increase of more than 15%.

Planning applications must appear in local papers, government rules

22nd December 2009, guardian.co.uk

Local and regional newspapers have been thrown a lifeline after the government decided to safeguard £15m of local advertising.

The advertising, in the form of planning applications, will still have to be published in local and regional papers, the government is due to announce today , despite a review recommending a relaxation of the rules.

Housing and planning minister John Healey is due to confirm today that the rules for local authorities advertising planning applications in local newspapers will not change.

To read the full article, click here.

Chancellor Believes Local Newspapers More Trusted Than Nationals

29th October 2009, Newspaper Society

Alistair Darling told a Newspaper Conference lunch that he believes local newspapers are more trusted than national newspapers.

He talked of the importance of local media and the pressures facing the industry, adding: "I think people do trust their local newspapers more than they do national newspapers".

He joked: "One of the most interesting things, as you will know working for newspapers outside of London, is that I'll say something here, you will write it up, and it will appear in your paper tomorrow.

"Then about two or three days later, a national newspaper will phone up and say ‘I've got this really good exclusive', you recognise it and say ‘that's what I said to that newspaper about four days earlier'."

Local Media Hits Back at Plans to Scrap Publication of Planning Notices

29th October 2009, Newspaper Society

Editors and publishers across the UK have joined the NS in opposing government plans to scrap the statutory requirement for planning notices to be published in the first place people look for them - local newspapers. "The right to information about planning applications will be denied to millions if mandatory newspaper publication is abolished in favour of local authority websites," said the NS.

The local media industry has been responding to the Department for Communities and Local Government consultation on Publicity for Planning Applications which is seeking views on its proposed changes to planning legislation.

In its response, the NS wrote: "The local paper remains the most effective, trusted and cost-effective way to ensure that statutory notices and other forms of government advertising reach the attention of the maximum number of people in a relevant area and therefore should be the primary publication method," adding that "web publication on council websites would exclude a large section of the public" and therefore would not be as effective.

Independent research has shown that the local media is the first place people look for information about public notices and planning applications - more than twice as popular as local council websites. Local newspapers are considered by British people to be the most trusted and reliable of all media. They reach 82 per cent of the adult population and these high readership levels are consistent across all sectors of society, including the more difficult to reach audiences such as those on lower incomes and young people.

To read the full article click here.

Why Local Papers Are Here To Stay

22nd October 2009, Newspaper Society

Local media is reaching bigger audiences than ever before, no other provider can match it for valued and trusted local news and information, and its power and effectiveness as an advertising medium is growing. Speaking about the strengths of the industry in his report to NS Council last week, director David Newell said publishers were reporting an improved advertising outlook and were well placed to come through the recession.

"Despite the suddenness and severity of the advertising recession which has hit all media sectors globally, local media ad revenues have been stabilising over the summer. And unlike many of its media competitors, local newspaper print readership is being maintained and the industry's investment in multimedia channels means that it is reaching more of the population than ever as well as attracting new online ad revenues," he said.

David spoke about the importance of regional and local news, citing recent research from Ofcom which found that consumers regard regional and local newspapers and regional TV as the most important of all media to society. Ofcom also found that - contrary to perceived wisdom - local newspaper content and the quality of local journalism has been improving over time, with case studies from across the UK showing a general increase in high quality investigative journalism and news and an improved overall editorial offering.

He also quoted a recent Mintel study which pointed out that "no other media gives the same commitment and attention to local and regional events as the regional press" and said that "no other provider, including local citizens, could consistently provide locally-focused coverage by journalists in the same way."

Local media is a £3.9 billion industry employing 38,000 people - including more than 11,000 journalists - with nearly 1300 core regional and local newspapers, more than 1500 websites, 600 niche and ultra local publications, 43 radio stations and two TV channels.

Online advertising overtakes TV spend for first time in UK

30th September 2009, IAB

For the first time, online advertising spend has overtaken that of television in the UK according to a report by The Internet Advertising Bureau (IAB) and PricewaterhouseCoopers.

According to the study over £1.75bn was spent in the UK in the first six months of this year, the first time this has happened within a major economy.

The growth in spend by the end of June was 4.6% year-on-year according to the report.

Technology companies were the largest spenders online, taking up around 19% of the market.

Guy Phillipson, chief executive of the Internet Advertising Bureau, said: "Internet advertising has beaten all expectations to achieve growth in the most challenging market conditions. Online display has performed notably well against its peers in TV, print and radio despite more than £1.5 billion being wiped off the advertising industry. We have a rollercoaster of a year ahead but even in tough economic conditions marketers still recognise the value, accountability and measurability of online advertising."

According to Martin McNulty, director for online marketing agency, Trafficbroker the overtake was inevitable.

"For so long the protagonist on the global advertising stage, TV is rapidly becoming the bit part," said McNulty.

"Its fate has been accelerated by the recession, which has radically altered what businesses need, and expect, from their ad spend, namely measurable results. Advertising is no longer about pay and pray, it's about performance. Search marketing, which is fully transparent, fully measurable and fully accountable, is swallowing up advertising budgets and becoming the battleground for brands that need direct response media, not a fanciful piece of brand positioning."

Television advertising spend has been dipping for several years, badly affecting production budgets and driving UK TV companies to look online to build ratings.

To read the report from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers click here.