Report Shows Decline in UK Ad Spend Due to Economic Concerns
Research has shown that the UK has seen its first quarterly decline in ad spend for two years, reflecting the trend of marketing directors tightening their budget due to economic uncertainty.
The Advertising Association/Warc Expenditure Report, which analysed advertising spend for all major UK media on a quarterly basis since 1982, claims that media spend in the second quarter decreased 1.1% in total.
This resulted from a drop in revenues year on year from TV (down 2.2%), and press (down 7.7%). Radio has shown a stronger growth of 7.3% uplift, and online channels grew by 6.4%.
Chief Executive at the Advertising Association, Tim Lefroy, commented: "Advertising is particularly prone to the bigger economic picture and while times remain tough, there are some grounds for optimism as we move towards 2012."
Despite the fact that the UK ad spend for the entire year has now been downgraded to a growth of just 0.9% compared to the previous forecast of 1.4%, the Advertising Association and Warc predict that ad spend will improve in 2012. Boosted by the London Olympics, they estimate a 4.6% rise year on year.