UK advertising will return to growth in first quarter

Search: internet advertising bucked trend in 2009
Search: internet advertising bucked trend in 2009

LONDON - The UK advertising industry is set to return to growth sooner than expected, according to new figures released today by the Advertising Association (AA) and research specialists Warc.

The AA had previously predicted that the industry would return to growth in Q3 this year, with spend rising 2.8%.

However, research suggests that modest growth is likely to be seen in Q1 and estimates that the industry will see a 3.6% year-on-year increase in Q2.

The report predicts greater growth in UK advertising across 2010, with the AA and Warc upgrading its full-year 2010 forecast from 0.4% growth to 2.3%.

Total advertising spend fell by 12% in 2009, the biggest fall since measurement began in 1982. Only cinema and internet advertising, both up 6% year-on-year respectively, bucked the downturn in 2009, with press advertising down 23% on 2008.

"It won't surprise anybody that the industry has had a tough year. But as confidence returns, it is clear that forward-thinking organisations are stealing a march on their rivals by investing in advertising," says Tim Lefroy, chief executive at the AA.

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