UK bucks ad spend shrinkage

Advertising spend forecasts for the Eurozone are still being revised down for 2012 but the UK appears healthier than countries sharing the single currency, according to Q2 data.

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ZenithOptimedia has cut its Eurozone forecast for the whole of 2012 due to economic weakness in particular countries such as Spain, Portugal, Italy and Greece, while Nielsen reports 3.8 per cent shrinkage in Q2 in the eurozone.

But Nielsen does point out that UK ad spend rose 2 per cent in Q2, with confidence slightly more robust than in the Eurozone.

ZenithOptimedia’s latest prediction revises its June forecast from shrinkage of 1.1 per cent to 3.1 per cent for the Eurozone this year. It sees ad spend in the Eurozone returning to slow growth next year and reaching 2.3 pr cent in 2014, provided the single currency remains.

Global ad spend is also revised down for 2012 from 4.3 per cent to 3.8 per cent. Looking at Q2 Nielsen records 2.4 per cent growth year on year.

Looking at media channels, television is predicted to take its highest ever share of global ad revenues, at 40.4 per cent, thanks to the European football championship, the Summer Olympics and the US elections.

As expected, internet ad spend is the fastest growing medium with a 21.4 per cent share expected in 2014. In the UK it already accounts for more than 25 per cent of ad spend.

Display is its fastest growing sub-category, with 20 per cent annual growth. Paid search and classified continue to grow but at a slower rate.

Global CEO for the Publicis-owned media agency network Steve King says: “Advertisers are broadly continuing to invest, despite the global economic concerns and issues. However, they are seeking to ensure that any expenditures are delivering strong return on investment. The US continues to deliver solid growth. This, combined with the growth in developing markets and in digital media, has helped mitigate the drop in eurozone spending.”

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