The Advertising Association (AA) and Warc have downgraded claims that UK advertising spend will grow by 4.7% in 2012, as predicted earlier this year.
Forecasted growth for next year has dropped to 3.8%, which reflects the “deteriorating economic outlook and the impact of the Eurozone crisis on global corporate and consumer confidence”.
The AA says that the total amount invested in UK advertising throughout this forecast period is only expected to be on a par with levels recorded in the late 1990s.
But to put this in context, this still puts spend at a whopping £15.9bn.
As for 2011, total adspend remains unchanged from October’s prediction, at +1.6% or £15.9bn.
With inflation considered, adspend is predicted to decline by -2.9% in 2011, with a marginal +0.7% rise predicted for 2012.
Cinema (+18.8%) and radio (+13.4%) recorded strong increases but these were offset by sharp downturns for print. Popular national Sunday papers (-28.4%) and popular supplements (-30.6%), witnessed the biggest decline due to the closure of News of the World.