1. The Expenditure Report Executive Summary of adspend survey data for Q2 2010 and forecasts to Q2 2012

2. Summary – Overall UK picture Outlook Advertising expenditure is expected to increase by 5.4% this year and by 2% in 2011. We have upgraded forecasts for 2010 (from 3.3%) and downgraded expectations for 2011 (from 2.4%). In Q2 2010, adspend rose by 11%. This strong growth can be partly explained by the World Cup and a weak comparable result for Q2 2009. The poor weather in Q1 may also have delayed the start of some campaigns until the summer. The rest of this year should see moderate growth of 3–5%. Later months will benefit from spending in advance of the VAT increase in January 2011. The impact of government cuts and faltering consumer confidence will act as a further drag on growth next year. TV, online and outdoor are expected to perform strongly in 2010. TV will be the fastest growing medium this year. Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport

3. Summary – The UK Media Mix All media – with the exception of direct mail – recorded growth in Q2 2010. TV (+24.2%) and cinema (+25.5%) saw significant increases, while out of home (+17.7%) and internet (+16.3%) also performed above trend. Radio had a particularly disappointing Q2, managing growth of just 0.6% TV, internet, cinema, outdoor and national newspapers all saw their shares of display advertising spend grow year-on-year in Q2 2010. The internet (including search) continues to gain share of classified (its share reached 67.8% in Q2) at the expense of newspapers and magazines. The internet’s share of total advertising spend increased 2.4% in the year to June 2010 and TV gained 1.7%. This came at the expense of press and direct mail. Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport

4. Summary – The UK Advertising Mix Total display spend is forecast to grow 7% in 2010. Internet and TV will lead the way, growing 13–15% this year. Business magazines and direct mail will be the losers. Recruitment advertising saw a 9.1% drop in Q2 2010 but the rate of the decline should improve by the end of the year. Even so, total spend in 2010 will be half that recorded in 2008. Led by search advertising, other forms of classified are forecast to grow by 4.3% in total this year. This is in marked contrast to last year’s 2.3% drop. Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport

5. Adspend declined 14.4% year on year in 2009 (at constant prices) % Total UK adspend annual % change (at constant prices) Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport

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

7. TV and cinema recorded the strongest increases in spend in Q2 2010 % Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport Annual % change in UK adspend, Q2 2010

8. All media except press and direct mail show growth for the year to date % Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport Annual % change in UK adspend, year to June 2010 Note: Press total combines all newspaper and magazine categories.

9. All media bar press and direct mail gained share in Q2 2010 Percentage points difference Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport Annual percentage points change in share of UK adspend, Q2 2010

10. The internet has had a significant share gain in the year to date Source: Advertising Association/Warc Expenditure Report, www.warc.com/expenditurereport Annual percentage points change in share of UK adspend, year to June 2010 Percentage points difference

11. 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 www.warc.com/expenditurereport