GroupM Raises U.K. Ad Forecast

LONDON: After having predicted in December that British ad spending would be flat in 2010, GroupM has increased its forecast, expecting a gain of 4 percent this year and a further 3 percent for 2011.

A year ago GroupM predicted a 3-percent decline for 2010, but is now citing that "advertiser confidence has tangibly improved." GroupM expects media spend to reach £11.85 billion. The growth is driven by an anticipated 11.6-percent gain in TV spend to £3.33 billion. However, GroupM foresees 2011 TV spend to increase by just 3 percent.

The revised report also reveals an expected 14.1-percent inflation in TV prices, due to greater demand and fixed supply. Online spend is expected to grow by 7.1 percent this year, with outdoor up by 6.5 percent, radio up by 6 percent and cinema increasing 5.4 percent.