NEWS20 December 2010

UK ad spend growth seen at 6.6%

Financials UK

UK— Advertising spending levels in the UK over the course of 2010 are set to show the highest levels of growth since 2004, according to the latest Advertising Association/Warc Expenditure report.

Growth was previously forecast to be around 5.4% for the year, but a stronger than anticipated third quarter has pushed expectations to 6.6%.

Growth in the fourth quarter “should remain solid, if slower” at 5.2%, the AA/Warc said.

Advertising Association chief executive Tim Lefroy (pictured) said: “It’s great to see another strong set of results in Q3, boosted by the World Cup and the ever-increasing popularity of big TV events such as The X Factor.”

Warc data editor Suzy Young added: “While UK ad spend has exceeded all expectations so far in 2010, it’s wise to remain cautious when looking to next year.

“We expect spend to increase by just over 2% in 2011, but there are risks ahead, especially with the government spending cuts and concerns about unemployment.”