UK adspend will grow 2.6% this year, totalling £26 billion, and 3.1% next year, according to a new forecast from GroupM.
GroupM added that measured media revenue will recover 4% this year to £13 billion, with marketing services up 1%, also to £13 billion.
According to GroupM, internet will still supply most of the growth and traditional media will underperform the economy long term unless it becomes more productive.
Internet revenue growth is forecast to slow from 47.5% in 2006 to 34.2% in 2007 and 30.4% in 2008, whilst TV revenue is forecast to fall an estimated 0.5% in 2007 and a 0.2% drop in 2008.
| Spend By Medium |
| £m, net except where stated |
2006 |
2007f |
2008f |
| TV spot including red-button |
3,443 |
3,430 |
3,426 |
| Radio spot |
447 |
447 |
452 |
| |
| Newspaper display |
2,031 |
2,008 |
1,991 |
| Newspaper classified |
1,955 |
1,833 |
1,736 |
| Magazines |
1,603 |
1,612 |
1,623 |
| |
| Outdoor |
742 |
784 |
830 |
| Cinema (includes production) |
162 |
173 |
1178 |
| Internet |
1,714 |
2,300 |
3,000 |
| |
| Media total £m |
12,097 |
12,587 |
13,236 |
| |
|
|
|
| Marketing services total £m* |
13,199 |
13,361 |
13,508 |
| |
| Media and marketing total £m |
25,296 |
25,948 |
26,744 |
| |
| YoY% change |
|
|
|
| Media |
1.8 |
4.1 |
5.2 |
| Marketing services |
-0.3 |
1.2 |
1.1 |
| Media and marketing total |
0.7 |
2.6 |
3.1 |
| *Direct marketing, market research, public relations, sponsorship, and branded programming. |
| Source: GroupM |
A recent forecast from eMarketer predicted that in 2007 Britain is set to account for over half of all online ad spending in Western Europe, rising to a 52.6% market share in 2010 (see UK To Spend £2.6 Billion On Online Advertising In 2007).
Meanwhile, a report from ZenithOptimedia estimated that global adspend will grow from 5.5% in 2007 to 6.4% in 2008, comfortably above the 5.1% annual growth rate the ad market has averaged for the past 10 years (see Global Adspend To Grow 6.4% In 2008).
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