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Industry Research


Ad spend to increase

Ad spend to increase

Good news for advertising. Advertising expenditure is to rise substantially between now and 2018 according to the latest ‘Long Term Advertising Expenditure Forecast’.

Following a strong performance in 2004, advertising expenditure growth in the UK has slowed over the past two years as the economy has cooled.
A recovery is expected during the coming year with annual growth rates then steadily increasing – and peaking in 2009.
In the absence of major threats to advertising, the best case scenario is that spend is projected to rise by 36 per cent in
real terms between 2006 and 2018.
Total advertising has been predicted to rise from the £16,134 million spent in 2006 to £21,944 million in 2018.
Display will be up from £11,235 million to 15,272 million; Recruitment Classified from £1,399 million to £1,154 million; and Other Classified from £3,500 million to £5,518.
The forecast reports that the underlying economic forces that drive adspend are likely to continue to be positive for the foreseeable future.
The fortunes of individual media will be shaped both by the underlying growth of advertising expenditure and by the competitive forces that affect spending in different media forms.
The forecast has split internet adspend into display, recruitment classified and non-recruitment classified so that the data is directly comparable with the quarterly Advertising Forecast report, also published by the AA.
The report concludes that although the fortunes of the individual media will be mixed over the next decade, the general pattern for the industry is one of growth, despite the perceived threats to advertising.
The report claims to be the most comprehensive forecast of the UK advertising industry ever produced by the AA.
The ‘Long Term Advertising Expenditure Forecast’ was compiled by the World Advertising Research Center (WARC) on behalf of the Advertising Association (AA).
It is available exclusively from WARC:
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