U.K. Ad Spend Set for 6 Percent Increase

LONDON: GroupM forecasts that advertising spending in the U.K. will increase by 6.3 percent this year to reach £15.9 billion ($24.8 billion).

The figures were released as part of the This Year, Next Year: U.K. Media and Marketing Forecasts report from GroupM. Ad spend in 2016 is expected to rise 4.8 percent to £16.6 billion ($25.5 billion).

TV's share is set to hit 27 percent in 2015, at £4.2 billion ($6.4 billion)—8.8 percent up on 2014—increasing to £4.4 billion ($6.8 billion) in 2016, a 3.8-percent rise. "This is mainly new demand, not inflation of existing demand," the report says. "Traditional TV impressions are coming off all-time highs in 2013, but advertisers continue to see value in the medium."

Digital spend will hit £8 billion ($12.3 billion) this year, rising to £8.7 billion ($13.4 billion) in 2016. 

"Advertisers lack pricing power in a deflationary world," the report notes. "The focus on marketing cost and performance will remain, but there is no limit on innovation or differentiation. U.K. media investment demonstrates this. The largest contributor to growth is online display, the most innovative part of U.K. advertising today, in execution, formats and data."