James: further growth expected
Signs of recovery in the outdoor and radio advertising markets have removed some of the gloom from the UK media industry.
Official figures from the Outdoor Advertising Association reveal a 5.1% year-on-year rise in revenues across the medium for the third quarter of 2002.
Figures released by the OAA this week show total revenue across the outdoor market rose by £183.4m in the last year.
This growth was fuelled by strong performances from the sectors of drink (+64%), entertainment (+53%), travel (+49%) and cosmetics (+47%), according to figures released by Nielsen Media Research.
The growth comes as a welcome relief to the outdoor industry, which suffered a 10.85% drop in revenues in the first quarter of the year.
Across the second quarter, the year-on-year drop narrowed to 2.08%.
According to the OAA's chief executive, Alan James, projections for 2002 indicated further growth in the final quarter of the year.
"Although the situation is still fluid, we are confident that the full year will now come in around par with 2001.
"Considering the less than encouraging start we had at the beginning of the year, this will be a very satisfactory result."
The radio market has also enjoyed a strong third quarter, with total revenue up 3.2% year on year to reach a year-to-date total of £556.9m.
The third quarter saw notable new investment from national advertisers - including News International, Tesco, Matalan and Jaguar - with eight motor manufacturers in the top 20.
Sponsorship and promotions remains a key area of growth for commercial radio, growing 17.6% across the quarter and 14.3% across the year.
Radio Advertising Bureau director of marketing operations Michael O'Brien said:
"We are delighted that new investment from a number of national and global brands has helped commercial radio to a third consecutive quarter of year-on-year growth.
"Furthermore, advertiser interest in the power of sponsorship and promotions to connect with their consumers continues to grow."
At a recent conference held by the Radio Advertising
Association, industry plans to promote further growth in this area by the development of best practice guidelines were revealed.