The Expenditure Report Executive Summary of adspend survey data for Q and forecasts to Q4 2011

Summary – Overall UK picture Outlook The outlook for UK advertising is much better than previously anticipated. In February growth was expected to return in Q Now, growth is expected throughout 2010, equating to an annual increase of 2.3% at current prices. Next year will see a further increase of 5.1%, taking total adspend to £15.6 billion, just under the figure recorded in TV should do well in H1 2010, boosted by the World Cup and a poor comparative performance in Q In terms of product categories, retail adspend performed relatively well in 2009, gaining 2% share at the expense of financial and durables. While both these sectors should return to growth this year, their overall expenditures will still be below those levels recorded in Source: Advertising Association/Warc Expenditure Report,

Summary – Overall UK picture 2009 review Total UK adspend fell 12.4% in 2009 at current prices, or 14.3% at constant prices. Only cinema and the internet recorded year on year increases in 2009, both up 5.7%. Press fared worst, down 22.8% on the previous year. The internet’s share of total advertising grew by just over 4 percentage points in 2009 compared with The share of total advertising accounted for by press fell by the same amount. Total advertising expenditure continued to decline in Q but at a much lower rate than the previous quarter. TV, national newspapers, cinema, internet and radio all saw their share of display advertising grow year on year in Q Magazines and direct mail were the biggest losers. Source: Advertising Association/Warc Expenditure Report,

Summary – The UK Advertising Mix Recruitment advertising dropped 42% year on year in 2009, with regional newspapers particularly badly hit. It is expected to decline further this year as economic recovery remains fragile. Other classified advertising will return to growth in 2010, boosted by online revenue. Search is expected to grow 7.1%. Most UK display sectors saw year on year declines of between 10% and 20% in Business magazines saw display revenues drop by almost 30%. Source: Advertising Association/Warc Expenditure Report,

Adspend declined 14.3% year on year in 2009 (at constant prices) % Total UK adspend annual % change (at constant prices) Source: Advertising Association/Warc Expenditure Report,

UK adspend recovery will arrive earlier than expected: we now predict growth throughout 2010 % Source: Advertising Association/Warc Expenditure Report, Total UK adspend annual % change (at current prices)

TV and radio returned to growth in Q4 2009, cinema and internet continued to perform well % Source: Advertising Association/Warc Expenditure Report, Annual % change UK adspend, Q Note: Internet: The size of the IAB survey panel varies from time to time. On a like-for-like basis, using data only from those panel members reporting in both 2008 and 2009, total internet adspend rose by 4.2% in 2009

Only cinema and internet recorded increases in spend in 2009 % Source: Advertising Association/Warc Expenditure Report, Annual % change in UK adspend, 2009 Note: Press total combines all newspaper and magazine categories. Internet: The size of the IAB survey panel varies from time to time. On a like-for-like basis, using data only from those panel members reporting in both 2008 and 2009, total internet adspend rose by 4.2% in 2009.

Internet and TV gained share in Q4 2009, at the expense of press and direct mail Percentage points difference Source: Advertising Association/Warc Expenditure Report, Annual percentage points change in share of UK adspend, Q Note: Internet: The size of the IAB survey panel varies from time to time. On a like-for-like basis, using data only from those panel members reporting in both 2008 and 2009, total internet adspend rose by 4.2% in 2009.

Internet’s gain in share is further evident when looking at full year 2009 Source: Advertising Association/Warc Expenditure Report, Annual percentage points change in share of UK adspend, 2009 Percentage points difference Note: Internet: The size of the IAB survey panel varies from time to time. On a like-for-like basis, using data only from those panel members reporting in both 2008 and 2009, total internet adspend rose by 4.2% in 2009.

The topline data included in this presentation is drawn from the Advertising Association/Warc Expenditure Report. The Expenditure Report provides detailed and authoritative advertising expenditure data for all major media. For more information and to subscribe please visit