GroupM: U.K. Ad Spending “Robust” Compared to European Neighbors

LONDON: Advertising spending in the U.K. across measured media is forecast to increase 3.4 percent this year, according to GroupM’s This Year, Next Year report, which says that the country’s ad expenditures and growth are well above the anticipated levels in other Western European territories.

The report, This Year, Next Year: U.K. Media and Marketing Forecasts, predicts U.K. measured ad spending to reach £13.2 billion ($20.6 billion), up from 2011’s £12.7 billion ($19.9 billion). The study predicts that in 2013, U.K. ad spending will increase 3.2 percent, reaching £13.6 billion ($21.3 billion).

“With every source of final demand growth stalled—consumer, government, corporate fixed investment and foreign—U.K. advertising investment remains at maintenance levels, lagging even nominal GDP growth,” said Adam Smith, GroupM’s futures director.

In regard to the market getting a boost from the Olympics, Smith said: “The Olympics effect cannot be quantified but is small in media. It has mattered more to sponsorship and public relations.”

While Smith points out that these figures are only modest gains, U.K. advertising spending still far surpasses the expected growth levels in other countries throughout Western Europe.

“According to our forthcoming global forecasts, the U.K. is leading media growth among the larger western European countries,” he said. “Germany and France are barely positive in 2012, while Italy and Spain are expected to contract about 8 percent.”

Digital was shown to have the most significant growth prospects in the U.K. According to the report, digital spending will exceed £5.3 billion ($8.3 billion) in 2012 and is expected to reach £6 billion ($9.4 billion) in 2013, marking an 11-percent increase.

“Digital spending growth already represents a quarter of the entire U.K. marketing economy, and it continues to grow,” said Smith. “Smartphone proliferation has suddenly made mobile search an urgent priority, while bestowing long-awaited targeting intelligence at scale. Mobile devices are also fueling second-screen usage, which is another digital revolution in the making: versatile, universal and ergonomic.”