UK advertising spend grows despite economic woes

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By The Drum Team, Editorial

December 13, 2011 | 2 min read

Advertising spend in the UK grew by 1.5% in the third quarter to £3.8bn, with a similar rate of growth expected in Q4 (1.3%) according to the latest Advertising Association/Warc expenditure report.

Cinema (+18.8%) and radio (+13.4%) recorded strong increases but these were offset by sharp downturns for print. Popular national

Sundays (-28.4%) and popular supplements (-30.6%), witnessed the biggest decline in adspend due to the closure of News of the World.

The report predicts that total UK adspend in 2011 will stand at £15.9bn (+1.6%).

But due to the deteriorating economic outlook and the Eurozone crisis it has downgraded expected growth in 2012 from +4.7% to 3.8% (£16.5bn).

If inflation is accounted for, adspend is predicted to decline by -2.9% in 2011, with a marginal +0.7% rise predicted for 2012.

The report adds that the impact of the credit crunch and economic downturn is such that the total amount invested in UK adspend throughout the forecast period is only expected to be on a par with levels recorded in the late 1990s.

Tim Lefroy, chief executive at the Advertising Association, said: “Adspend isshowing steady growth in the second half of 2011 and this looks set to continue through 2012, despite the gloomy economic outlook.”

Suzy Young, data editor at Warc, added: “The London Olympics and the Euro 2012 football tournament should provide a boost to UK adspend in the summer months, but there is a possibility that this could come at the expense of the first quarter.”

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