Advertising spending 'dropped 4%'

The Sun claims Labour has "lost it" and is now backing the Conservative Party.

Spending on advertising dropped dramatically as the economy faltered, figures show.

Expenditure fell to £18.6 billion in 2008, a 4% drop compared to the previous year, which followed growth of 4.3% the year before.

The press remained the most popular medium for advertisers, taking 37% of the money spent on ads, but the tough conditions meant spending in the sector was down almost 12%.

Television and radio also suffered, with only the internet and the cinema recording growth of 19% and 1% respectively, according to the Advertising Association's Advertising Statistics Yearbook.

After the press and TV, which has a 24% share of spending, the internet is now the third largest advertising medium with a share of just over 19%.

Guy Phillips, chief executive of the Internet Advertising Bureau (IAA), the trade body for digital marketing, said online ads were attractive because their impact could be measured easily.

"Online performed well last year, particularly considering that the second half was very hard for the overall advertising market," he said.

"This is the first time there has been a recession while the internet existed and advertisers are moving their money into media they can easily measure.

"So while traditional media might be declining, online grew last year."

But he warned: "I think this year is going to be pretty tough all round."