The Advertising Association’s latest ‘Long Term Advertising Expenditure Forecast’ suggests significant growth for the UK advertising market over the next decade.
It seems the adspend downturn of 2000 has not meant the end of advertising expenditure growth in the foreseeable future, as forecasters had previously suggested. Instead, the underlying economic forces that drive spend are likely to continue to be positive, according to the AA. The AA report concludes that while the fortunes of individual media will be mixed over the next decade, the general pattern for the advertising industry is one of growth, despite perceived threats.
High and Low Ten Year Forecast Options | ||||||
(£m at constant 2000 prices) | ||||||
High Option | Low Option | |||||
Total | Display | Classified | Total | Display | Classified | |
2004 | 15,850 | 11,650 | 4,200 | 15,750 | 11,624 | 4,127 |
2014 | 21,000 | 15,792 | 5,208 | 19,650 | 15,170 | 4,480 |
In September, the AA revised downwards its advertising expenditure forecast for 2005 from 4.9% to 4.4% (see AA Downscales Its 2005 Ad Expenditure Forecast) , as a result of signs of weakening consumer confidence, but these latest forecasts suggest the long term prognosis for the UK advertising market is one of real growth.