UK advertising to return to growth in Q1

The UK advertising industry will report a faster than expected recovery in 2010, according to the latest Advertising Association (AA) and Warc expenditure report.

It indicates a return to modest growth in Q1 2010 – two quarters earlier than previously expected.

UK advertising will grow particularly strongly in Q2 2010, however, up 3.6% year on year, said the AA/Warc.

For the full-year 2010, advertising is forecast to grow 2.3%, upgraded from the previous forecast of 0.4%.

Television advertising, boosted by the World Cup, is predicted to perform strongly, having returned to growth in Q4 2009.

Tim Lefroy, Advertising Association chief executive, said: “It won’t surprise anybody that the industry has had a tough year.

“But as confidence returns, it is clear that forward-thinking organisations are stealing a march on their rivals by investing in advertising.”

The report also shows that total advertising spend fell by 12% in 2009, the biggest fall since measurement began in 1982.

Cinema and internet advertising bucked the trend for overall decline in 2009, with each increasing spend by 6%, while press advertising was hit hardest, down 23% year on year.

Suzy Young, data editor at Warc, said: “There is now clear evidence that the industry has seen the worst of the recession.

“Structural challenges, particularly with print media, remain and the recovery is fragile but for advertisers, agencies and media alike, the prospects for 2010 look considerably brighter.”

At the start of April, Magna upgraded its 2010 growth forecast for UK media supplier ad revenues to 3%, up from its previous forecast of 1%.

It now estimates that the media economy will reach £11.3 billion in 2010 – roughly 2004 levels.This followed the publication of ZenithOptimedia’s upgraded UK and global adspend growth forecasts, predicting UK growth of 1.3% this year and global growth of 2.2%.