The Advertising Association/Warc Expenditure Report Executive Summary of adspend survey data for Q and forecasts to Q Updated to include full year 2010 internet data (April 2011)

Summary – Overall UK picture Overall, advertising expenditure increased by 8.1% in 2010 at current prices, or 4.6% at constant prices. This represents the fastest growth since the dotcom boom, albeit on the back of a very weak 2009 TV was the fastest growing medium, increasing by 15.8% last year – its fastest recorded growth since Internet (+15.7%) and out of home (+12.5%) also saw double digit growth The rate of adspend growth will slow to an anticipated 2.9% this year, before increasing to +5.4% in 2012 Press results were mixed – national newspapers bounced back by 6% in 2010, but the regionals and magazines fared less well, dropping 6.4% and 5.9% respectively Source: Advertising Association/Warc Expenditure Report,

Summary – Overall UK picture Source: Advertising Association/Warc Expenditure Report, In Q4 2010, adspend rose by 7.5%, boosted by a strong performance by internet (+16.8%) and direct mail (+12.7%). Possibly advertisers are attracted by DM’s accountability in these uncertain times, though the medium’s overall spend is only on a par with 1998 levels For most media, growth rates slowed towards the end of 2010 and a relatively weak economy, falling consumer confidence and rising unemployment will curtail further expansion this year We anticipate higher rates of growth in 2012 as the economic recovery gains traction and London hosts the Olympics TV expenditure grew strongly during 2010 and will continue to do so up until the Easter weekend and Royal Wedding, before easing off in the latter half of the year

Summary – The UK Advertising Mix Total display spend for 2011 is expected to be 3.6% up in 2011, following growth of 10.8% in This surge was boosted by the strong demand for both internet (+1.9pp) and TV (+1.6pp). Total classified adspend increased 1.9% in 2010 and is forecast to rise by a further 1.2% this year Recruitment advertising continued its decline last year (–17.2%) and is forecast another sharp drop in 2011 (–12.2%). The decline should halt in 2012 when revenue is expected to be maintained or show marginal growth Non-recruitment classified increased spend by 5.5% in 2010 and should continue to growth throughout the forecast period. Source: Advertising Association/Warc Expenditure Report,

Adspend increased 4.6% year on year in 2010 (at constant prices) % Total UK adspend annual % change (at constant prices) Source: Advertising Association/Warc Expenditure Report,

UK adspend is expected to increase throughout the forecast period % Source: Advertising Association/Warc Expenditure Report, Total UK adspend annual % change (at current prices)

Internet and direct mail recorded the strongest increases in spend in Q % Source: Advertising Association/Warc Expenditure Report, Annual % change in UK adspend, Q (at current prices) Note: Press total combines all newspaper and magazine categories.

TV and internet showed the biggest annual increases in 2010 % Source: Advertising Association/Warc Expenditure Report, Annual % change in UK adspend, 2010 (at current prices) Note: Press total combines all newspaper and magazine categories.

TV, internet and direct mail all gained share in Q Percentage points difference Source: Advertising Association/Warc Expenditure Report, Annual percentage points change in share of UK adspend, Q Note: Press total combines all newspaper and magazine categories.

TV, internet and out of home have all gained share in 2010 Source: Advertising Association/Warc Expenditure Report, Annual percentage points change in share of UK adspend, 2010 Percentage points difference Note: Press total combines all newspaper and magazine categories.

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