GroupM predicts steady UK ad spending growth

Advertising spending in measured media in the UK is expected to show a 3.3% increase this year, ahead of the 2.1% advance recorded in the summer Olympics year 2012, according to a new report from GroupM.

The increase is similar to the modest pace of growth anticipated in North America, but behind ad investment in the Eurozone, where the report is predicting a -4% decline.

The report, ‘This Year, Next Year: UK Media and Marketing Forecasts‘ said measured ad spending in the UK is expected to reach a total of £13.5 billion in 2013, up from £13 billion in 2012.

The study, released by GroupM Futures Director Adam Smith, also predicted that UK ad spending in 2014 would increase 3.5% to £13.9 billion.

“In a slow-growth world, the U.K. is one of the leading sources of new advertising demand,” Smith said. “Wage growth and consumer spending remain depressed, but advertisers continue to invest into productive and diverse digital media.”

According to the report, digital spending will reach £5.9 billion in 2013 and is expected to reach £6.5 billion in 2014, indicating an 11% increase. Mobile media is expected to account for 15% of digital investment in 2013, up from 5% in 2011 and 10% in 2012, rising to an expected 18% in 2014.

Print media remain under the most pressure, with advertising in newspapers and magazines expected to drop below £3 billion this year to £2.7 billion – a decline of -8% from 2012. GroupM forecasts a further -10% drop in 2014 to £2.5 billion.

Smith added: “UK print brands are active digital innovators, but we estimate this currently retrieves at best a quarter of the ad investment departing their physical formats.”