Slight Improvement in British Ad Market

LONDON: GroupM has issued a revised advertising forecast for the U.K. market this year, predicting a smaller decline than previously expected, while upgrading its projections for 2010.

The revised forecast was driven by an increase in Q4 spending. Looking ahead, 2010 adspend is expected to be flat on 2009, versus a previously forecast 3-percent decline. TV advertising, which was down 5 percent to £3.3 billion in 2008, is forecast to fall by 11.6 percent this year to £2.9 billion and will remain flat in 2010.

“Both 2009 and 2010 are looking slightly better than we imagined six months ago,” said Smith. “Confidence seems to be improving, though based on anecdotes rather than substance. This alone may be enough to revive marketing investment, but it cannot make any easier the fiscal and household consolidation which lies ahead in 2010.”

The U.K. was among the first into ad recession and it could be among the first out, Smith said, noting that other major Euro ad markets are expected to see single-digit-percentage declines in 2010. The market is expected to return to more than 5-percent growth in 2012.