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| KN74018 |
| KEY NOTE ADVERTISING AGENCIES AUGUST 1998 |
| Overview |
ISBN 1-85765-850-7

The UK advertising industry remains a world leader in terms of business
won and creativity. This position has been enhanced in recent years, with the
strong economic performance of the UK and the increasing integration of
accounts in the UK, Europe and internationally.
Between 1993 and 1997, the industry grew in value by 45.8 percent. 1997
was a particularly strong year, with the industry achieving billings in excess
of £12bn. This was due to a number of factors, including the strong
economy, the continued high reputation of UK agencies, and the large number of
special events, such as the General Election and the Euro `96 tournament.
Press advertising continues to be the major source of advertising
revenue followed by television (TV), direct marketing and then other forms.
Companies producing fast-moving consumer goods (FMCGs) are the major spenders.
Naturally, the major FMCG companies, such as Unilever and Procter & Gamble,
remain large spenders as do the leading retailers and banks.
The advertising industry has seen a period of consolidation in the last
5 years with cross-ownership, increasing internationalisation and a
centralising of accounts by major clients. Groups such as WPP Group and Havas
Advertising have emerged as extremely large and diverse communications
conglomerates, as well as strongly performing listed companies.
Between 1998 and 2002, the market for advertising in the UK is forecast to grow by 21.3 percent to £16.5bn. The market is expected to slow down somewhat as the UK business cycle peaks, stricter central government fiscal control is introduced and media buying becomes more competitive.
Text © 1998 Key Note
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Last updated by Duncan Nottage 5th March 1999