There are signs and predictions in the UK that radio advertising revenue will be overtaken by the internet, possibly by the end of next year.

This follows the release of 2003 expenditure figures by the Advertising Association which show that, despite a terrible 2002, last year in Britain was even worse. Ad spending fell 0.4% in real terms, but there was a healthy upturn in the final quarter.

For the year, advertising expenditure on the internet grew by a massive 61.6% but, encouragingly, radio was up by 6.8% and outdoor advertising rose 10.4%.

If the current rate of growth continues, however, the internet will exceed radio as a source of advertising income by the end of 2005.

Actual ad revenue share, 2003:

* Press – 48.7%

* TV – 25.4%

* Direct mail – 14.1%

* Outdoor – 5.2%

* Radio – 3.4%

* Internet – 2.2%

* Cinema – 1%.