UK classified advertising, which generated £4.8 billion in 2007 (26% of total UK advertising spend), could decline to £4.2 billion in 2008 and to £3.7 billion in 2009. In our view, advertisers are accelerating their shift online as a result of the economic downturn, while the property market’s steep decline depresses associated classifieds. Online has already overtaken national newspapers and magazines as classified advertising media, and looks set to rise above directories in 2008. In the near future, online will be the leading classified advertising medium, ahead of regional newspapers. The enclosed presentation updates for 2008 the information contained in Classified Advertising in the UK [2007-55]

The second national digital radio multiplex, awarded by Ofcom in July 2007 to 4 Digital Group, has not yet been built, despite having promised a launch within twelve months

Ofcom’s second consultation document in its pay-TV investigation has focused on BSkyB’s wholesaling of designated premium film and sports channels, reviving memories of previous regulatory efforts to address the content wholesale/retail issue

Ofcom’s second consultation document on Next Generation Access raised few new issues. Ofcom continues to favour passive access and emphasises the importance of joint investment in it

The long awaited first Android-driven handset was launched this week, and with the Google logo emblazoned on the back it has been swiftly christened the Googlephone

European revenue growth fell to 1.4% in the quarter, down 0.8ppts from 2.2% last quarter, driven primarily by Spain where growth fell 4.1ppts. The deterioration was despite an improvement in the regulatory conditions, and underlying growth fell by 1.0ppts, with Italy slowing rapidly

We have downgraded our short-term forecasts of TV NAR (net advertising revenue) growth from -5% to -5.75% for 2008 and from -3% to -6% for 2009 in light of the worsening economic conditions and early indications of Q4 advertising spend

Deteriorating economic conditions are impacting growth in online advertising, with display and classified especially affected, though search, which accounts for about 60% of spend, remains relatively robust

Tiscali UK’s H1 results showed falling subscribers, revenue and margins, as the competitiveness of the UK broadband market bites

UK broadband market net additions in Q2 2008 were lower than at any point in five years. LLU data for Q3 to date suggests that a second half improvement will not be as substantial as in recent years