UK ad forecasts revised downward

The Advertising Association/Warc Expenditure report revision was because of a more cautious outlook for UK GDP and concerns over the Eurozone in 2015 but the 5.7% adspend growth still reflects the healthier state of the market in recent years. The period 2014-2015 will be the strongest consecutive growth years for UK adspend this century and reflects a sector significantly outperforming the wider economy.

Tim Lefroy, chief executive at the Advertising Association said: “Two years growth at twice the rate of the economy is hardly a recipe for pessimism but adspend isn’t immune to pressures on other sectors. The underlying story, however, is of a sector continuing to feed growth, jobs and opportunity.”

The latest data showed that UK adspend grew 4.2% in Q3 2014 to reach £4,307m. This represents a slowdown versus the 8.5% increase in Q2 2014 which benefited from the football World Cup, but similar growth to Q1 2014 and the second half of 2013. TV spot advertising rose 3.8% year-on-year, with adspend of £1,001m.