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NEWS8 July 2014

Strong first quarter for UK adspend

News UK

UK — An uplift in the economy and World Cup boost has led to an improved forecast for UK adspend in 2014 according to the Advertising Association/Warc Expenditure Report.

Advertising growth rates have now been revised upward to reach 6% in 2014 and 6.7% in 2015.

Total UK advertising expenditure increased by 5% in Q1 2014 to reach £4,441m, ahead of the 4.5% growth predicted in April. Revenues increased for spot TV advertising by 6.0% in Q1 to reach £1,100m. This is expected to reach 10.5% growth in Q2 as the World Cup provided a significant boost for the TV market. However, the rate of increase is expected to ease in the third quarter, as a result of budgets being brought forward specifically for the tournament. Overall 2014 is expected to deliver a 6.5% increase compared with 2013.

Radio also had a good start to the year, with ad revenues rising by 5.7% in Q1 compared with the same period a year ago. The second quarter is expected to show healthy growth ( 7.6%), before it slows for the rest of the year. AA/Warc expects radio to register an annual increase of 4.4% in 2014, the sector’s best performance since 2003.

Among other media Out of Home is forecast to grow 2.7% in the year; cinema by 6.4% and the internet (including mobile) by 14% in 2014. The sectors where a decline is expected are: national newsbrands (-1.9%); regional newsbrands (-7.3%) and magazines (-2.1%).

Karen Fraser, strategy director at the AA said: “This latest set of data shows the importance of global events such as the World Cup to advertising spend in the UK. Following a positive start to the year in Q1, Q2 is set to be a strong quarter for the sector, buoyed by the tournament.”