UK ad spend will grow by 4.1% this year and 3.9% in 2008, driven “almost entirely” by online advertising, according to figures published by media agency Carat.
The predictions mark a dramatic rise on the 1.4% growth of 2006, but fall short of the global average. The 2007 estimate is also slightly down on Carat figures published in December, which put growth at 4.2%.
Carat believes that national newspapers are likely to see a drop in advertising revenues of 2-3% over the year. TV revenues are expected to remain flat, although digital TV services will “continue to grow well”.
Within magazines, weeklies are outperforming monthly titles, while a run of blockbusters will support moderate growth in cinema, Carat predicts.
The figures, which are published by the Aegis-owned agency today (Wednesday), mark revised global forecasts for 2007 and its first set of figures for next year.
Across Western Europe, Carat says advertising will grow by 4.1% this year and 3.9% next. Globally, it says advertising will grow 5.8% at current prices this year and 6.4% in 2008.
China, at 20.9% this year, is growing over three times faster than the global advertising industry, and achieving double-digit growth in every major medium.
Aegis Media chief executive Mainardo de Nardis says global ad growth is “comfortably outgrowing” world gross domestic product. “The global picture is one of healthy growth,” he adds. “While digital continues to outpace other media in every corner of the world, rumours of the death of so-called old media are exaggerated.”