GroupM: Sharp Recovery Expected in U.K. Ad Spending Growth

LONDON: Advertising spending in measured media in the U.K. is forecast for a 7-percent increase this year, which is double what GroupM predicted just six months ago.

In GroupM's This Year, Next Year UK report, measured ad spending is predicted to reach a total of £13.9 billion ($22.5 billion) this year, which is up from the £13 billion ($21 billion) in 2012.

The study predicts that U.K. ad spending will continue to increase, with growth in 2014 of 6 percent to £14.8 billion ($23.8 billion).

TV advertising is expected to increase 6.8 percent in 2013 and 5.1 percent in 2014.

“This ad recovery is spectacular, but not a phenomenon,” commented Adam Smith, GroupM Futures Director. “U.K. annual GDP is likely to have risen 9 percent in cash terms since 2008, and annual advertising the same. The question is whether advertisers sustain their optimism that U.K. households are feeling richer, and might actually get richer, between now and the election expected in spring 2015.”