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GroupM: Modest UK ad spend growth predicted for 2012/13
UK ad spending remains above expected growth levels in other Western European countries, according to new figures released by GroupM, with digital showing the best growth prospects.
GroupM's report, "This Year, Next Year: UK Media and Marketing Forecasts", predicts UK measured ad spending will reach $20.6 billion (£13.2 billion) this year, up from $19.9 billion (£12.7 billion) in 2011.
Next year will see ad spend further increase 3.2% reaching $21.3 billion (£13.6 billion).
The most significant growth is in digital where spending will exceed $8.3 billion (£5.3 billion) this year and rise 11% next year to reach $9.4 billion (£6 billion).
"Digital spending growth already represents a quarter of the entire U.K. marketing economy, and it continues to grow," said Adam Smith, GroupM's futures director. "Smartphone proliferation has suddenly made mobile search an urgent priority, while bestowing long-awaited targeting intelligence at scale. Mobile devices are also fueling second-screen usage, which is another digital revolution in the making: versatile, universal and ergonomic."
GroupM doesn't believe the Olympics will have a significant boost to the media market, but that sponsorship and public relations will benefit more from the Games.
U.K. advertising spending still exceeds expected growth levels in other countries throughout Western Europe. Germany and France were "barely positive" in 2012 while Italy and Spain are expected to contract about 8%.
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