GroupM predicts UK ad market first out of recession

GroupM forecasts that the U.K. will be the first ad market to pull out of the global economic recession next year, with relatively high rates of growth expected for Internet and mobile.

by Helen Leggatt

Both 2009 and 2010 are looking more promising in terms of ad spend in the U.K., according to GroupM's Futures Director, Adam Smith. Not only has Smith revised his previous forecast of a decline of 14% for 2009 to 11.6% ($18.6 billion), he is also predicting that 2010 will see an expansion in ad spending of 0.1% instead of a decline of 3%.

When it comes to traditional media, the forecast continues to show a decline for U.K. channels such as TV (-0.2%), radio (-5%), national (-5.8%) and regional (-4.6%) newspapers and magazines (-8.1%). However, digital media such as Internet and mobile advertising is set to rise 7.3% and 50% respectively. Outdoor is also forecast to rise by 2.2%.

"Both 2009 and 2010 are looking slightly better than we imagined six months ago," said Smith. "Confidence seems to be improving, though based on anecdotes rather than substance. This alone may be enough to revive marketing investment, but it cannot make any easier the fiscal and household consolidation which lies ahead in 2010."

Tags: ad spend, advertising marketing, global recession, Internet, Mobile, U.K.