Advertising spending soars in new boost for economy


The British advertising market has bounced back to levels last seen before the 2007 credit crunch and is on course to keep growing strongly this year and next, boosting hopes that the UK economy is on the mend.

Total ad expenditure on everything from the internet to billboard posters is forecast to rise 2.7 per cent in 2013 and a punchy 5 per cent in 2014 — well ahead  of inflation.

Figures from the Advertising  Association and trade body Warc showed online and video on demand (VoD) are driving growth, but traditional media such as TV and national newspapers are also resurgent “driven partly by a strengthening economy”.

The City welcomed the authoritative AA survey because marketing spend is widely seen as an early indicator for the wider economy. Companies tend to cut back quickly when they fear a downturn and increase spend if the outlook is good.

“Advertising does not just track GDP, it drives it,” said AA chief executive Tim Lefroy. “The return to pre-recession levels of spending will have an impact not just on adland but the economy at large.”

The AA and Warc said the UK ad market climbed 2.3 per cent to £17.17 billion in 2012 as the Olympics and the Queen’s Diamond Jubilee gave a lift — although that rise was not as much as some experts had predicted.

The internet has been the single most dominant medium for several years and climbed to £5.42 billion after a 13 per cent surge, while TV was little better than flat at £4.48 billion.

Last year’s overall performance was the best since 2007 when expenditure peaked at £17.36 billion, and the survey suggests the market should easily beat that mark in the coming years.

Internet ad spend will again be the best performer, up 10 per cent in 2013 and a predicted 9 per cent in 2014. VoD should leap by a third next year as consumers embrace mobile viewing, helping to send total TV ad spend up 6.9 per cent.

The rise of digital should also help national newspaper brands to bring in an extra 2.7 per cent in ad revenue in 2014, as growth in online and tablet advertising more than offsets any declines  in print.

Rufus Olins, chief executive of  Newsworks, which represents the newspaper industry, said it showed successful print titles were evolving into “multi-platform brands”.

Analyst Giasone Salati from Espirito Santo bank said there was “a lot of optimism about the UK” compared with Western Europe, which has been in decline.

But he sounded a note of caution because wider GDP growth has been anaemic, up only 0.3 per cent in the last  quarter. “Looking at the combination of where GDP forecasts are going and how relatively high business  confidence is, we think the UK ad  market could disappoint on the downside,” he warned.

Arts and Entertainment
Jake Quickenden sings his heart out in his second audition
tvX Factor: How did the Jakes - and Charlie Martinez - fare?
Frank Lampard and his non-celebration
premier leagueManchester City vs Chelsea match report from the Etihad Stadium
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave crime series
premier league
Mario Balotelli celebrates his first Liverpool goal
premier leagueLiverpool striker expressed his opinion about the 5-3 thriller with Leicester - then this happened
people'I hated him during those times'
Britain's shadow chancellor Ed Balls (L) challenges reporter Rob Merrick for the ball during the Labour Party versus the media soccer match,
peopleReporter left bleeding after tackle from shadow Chancellor in annual political football match
Arts and Entertainment
Female fans want more explicit male sex in Game of Thrones, George R R Martin says
tvSpoiler warning: Star of George RR Martin's hit series says viewers have 'not seen the last' of him/her
Dame Vivienne Westwood has been raging pretty much all of her life
peopleMemoir extracts show iconic designer 'felt pressured' into going out with Sex Pistols manager
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
fashionAlexander Fury's Spring/Summer 2015 London Fashion Week roundup
Arts and Entertainment
Lauryn Hill performing at the O2 Brixton Academy last night
musicSinger was more than 90 minutes late on stage in Brixton show
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
people''Women's rights is too often synonymous with man-hating'
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam