Economic caution leads UK Ad Association to downgrade forecast
DetailsJoseph O'Halloran | 13 January 2015
Gloomier economic prospects for UK GDP and concerns over the Eurozone in 2015 have driven the UK Advertising Association to trim back its forecasts for its industry's prospects over the year.
adreportYet despite the more cautious outlook, the latest Advertising Association/Warc Expenditure Report,Warc Expenditure Report, claimed to be the definitive measure of advertising activity in the UK, shows that the 2014-2015 period will be the strongest consecutive growth years for UK ad-spend this century, reflecting a sector significantly outperforming the wider economy.
The data shows that UK ad-spend grew 4.2% in Q3 2014 to reach £4.307 billion, compared with the 8.5% increase in the second quarter of 2014 which benefited from the football World Cup, but similar growth to the first quarter of 2014 and the second half of 2013. Looking to 2015, the report predicts ad-spend growth of 5.7% this year, down from 6.5%, with full year 2014 forecasts adjusted down from 6.4% to 5.8%.
In the TV sector, the report predicts that full year 2014 spend will be £4.971 billon up 7.1% year on year. Of this total, £4.486 billion will derive from spot advertising and £160 million from broadcaster video-on-demand (VOD) services services. Thee represent year on year rises of 6% and 27% respectively.
"Two years growth at twice the rate of the economy is hardly a recipe for pessimism but ad-spend isn't immune to pressures on other sectors," said Tim Lefroy, Chief Executive at the Advertising Association "The underlying story, however, is of a sector continuing to feed growth, jobs and opportunity."