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London (pte045/01.03.2005/15:45) - Worldwide expenditure for TV advertising is continuing to rise, according to new figures. Despite the continuing threat from the internet, according to media buying agency Initiative http://www.initiativemedia.com , TV advertising's proportions of global advertisement spending has risen in the past five years. A report from the research arm of the agency found expenditure on TV advertising grew from 37.77 per cent of global advertising spending in the so-called "boom year" of 2000 to a predicted 42.1 per cent this year. All in all, spending rose by 12.1 per cent to 143 billion dollars. This was boosted by massive growth in China and presidential elections in both the US and Indonesia.
"There's much talk about the death of TV advertising but it's still looking very healthy," said Sue Moseley, the managing director of Initiative Futures Worldwide. Spending in advertisements increased despite the increased popularity of advert avoidance technology such as TiVo and Sky Plus and the growth of rival media such as the internet and outdoor. "We are now back to a very healthy advertising environment;" said Moseley. "Multi-channel television has brought more channels so we have got fragmentation, but it means advertisers can take advantage of TV because the costs have come down." Global advertising is expected to grow this year by 5.8 per cent to 363 billion dollars. This will allow the global market to exceed the boom year of 2000 by 1.7 per cent.
According to the report, massive growth in internet advertising will see it surpass spending on outdoor for the first time next year. Internet spending soared again last year to be the fastest growing medium, growing by 32.8 per cent. Initiative predicts a further 20.4 per cent growth this year to 17.2 billion dollars. The internet was the fastest growing medium in the mature markets of the US and western Europe. In the US, the internet was almost double the size of outdoor. "If you look at western Europe, then internet has grown quite significantly, but it hasn't challenged outdoor in the same way," said Moseley. In western Europe, outdoor advertising accounts for 7.3 per cent of the market and the internet 3.3 per cent.
The US remained the world's largest advertising market last year with 155 billion dollars. This made it four times the size of nearest rival Japan and nine times the size of the British market. This year, it is expected that China will become the third largest advertising market with 19 billion dollars. However, China will not challenge Japan's number two position for years, the report said. In 2004, Britain overtook Germany to become Europe's largest advertising economy and slip into fourth place. This year, it will be worth 18 billion dollars.
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