Online Ad Spend to Lead Modest Overall Growth in UK

July 3, 2012

This article is included in these additional categories:

Digital | Europe & Middle East | Financial Services | Magazines | Media & Entertainment | Newspapers | Radio | Television | Uncategorized

groupm-uk-ad-spend-2011-2013-jul2012.pngDigital ad spending will exceed ?5.3 billion in 2012 and is expected to reach ?6 billion in 2013, representing 14.2% and 10.9% year-over-year increases, respectively,?according to a July report from GroupM. Overall advertising spend is expected to grow by 3.4% this year and 3.2% in 2013, following a 3.3% rise in 2011. Online spending will grow at a much faster rate than traditional media, with print expenditures seeing marked declines. Spending on regional newspapers will total ?1 billion ($1.6 billion) in 2012, but should drop to ?971 million ($1.5 billion) in 2013, while spending on national newspapers is expected to fall from ?1.2 billion ($1.9 billion) in 2012 to ?1.1 billion ($1.7 billion) in 2013.

The 14.2% growth in online ad spend forecast for this year aligns with the 14% growth in the UK paid search market predicted by Econsultancy in May 2012. According to ZenithOptimedia, paid search will account for roughly half of all global online ad spend this year.

TV Spend to Remain Stagnant

In other media forecasts, GroupM predicts that TV spending will remain fairly stagnant, gaining just 0.1% in 2012 and 1.2% in 2013, while radio expenditures will increase 4.7% in 2012 and 2.6% in 2013. All forms of print will suffer alongside newspapers, with B2B magazines expected to drop 10.0% in 2012 and 9.8% in 2013, and consumer magazines declining 8.0% then 5.0%. However, digital ad spending growth will benefit some of those publishers, as the figures describe spending for the print-only versions.

UK to Lead Europe In Growth

The UK’s overall 3.4% growth in measured media ad spend expected for this year is relatively small considering the upcoming London Olympics, but strong compared to growth in the rest of Europe. By contrast, Germany and France are barely positive in 2012 while Italy and Spain are expected to contract about 8%.

About The Data: The report is part of GroupM’s media and marketing forecasting series drawn from data supplied by holding company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications.


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