GroupM cuts UK ad forecast from 1.5% to 0.7%

WPP’s GroupM has reduced its 2011 UK ad spend forecast from 1.5% to 0.7%.

In June, GroupM predicted a poor year for national and regional newspapers – forecasting an 8.3% fall in ad spend.

It has now revised that to an 11% drop, with nationals down from -4.1% to -6% and regionals down from -12.6% to -16%.

The group also predicts that consumer magazines will be down 6% (instead of 5%) and cinema down by 5%. Outdoor is expected to remain static.

However, radio is forecast to be up 5%, while TV will be up 1.1%. Interaction (paid search, display and classified) will enjoy 10.5% growth, according to the WPP arm.

In 2012, online is expected to rise 9.1%; radio 5%, TV and cinema 3% and out of home 6%. Newspapers will be down 5.3%, while consumer magazines will fall 3%. Overall growth next year will be 3.2%, according to GroupM.