UK ad spend growth weaker than forecast, says AA/Warc

The forecast for UK advertising spend growth in 2011 has been halved in the latest Advertising Association (AA)/Warc figures.

The quarterly report has downgraded UK ad spend growth from its previous prediction of 2.9% to 1.4%. The revision follows slower growth than expected in Q1 of 1.7%.

All media are expected to see revised downwards growth, except for online advertising, which is expected to jump 7.2%.

Growth in television and out-of-home has been adjusted downwards to 2.5%.

However, the report remains confident for growth in 2012 spurred by the London 2012 Olympics and the forecast is for a jump of 5.4%.

The AA’s downgrade chimes with recent global ad spend forecasts from media networks and owners. Magnaglobal has just revised its global forecast downwards to 5.2% from 5.6%.

PwC says that UK growth will rise 4.8% over the next four years.

Chief executive at the AA Tim Lefroy says: “£2011 was always going to be tough, but the second half of the year gives cause for cautious optimism.”

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