Britain’s booming advertising industry to overtake Germany

Zenith Optimedia forecasts that UK ad revenue will soar by £1bn or 7.4% this year to £14.3bn

The British advertising market is growing at an “amazingly strong” rate and is set to overtake Germany to be the world’s fourth largest in a sign that the UK recovery is accelerating.

The media buying agency Zenith Optimedia forecasts that UK ad revenue will soar by £1bn or 7.4 per cent this year to £14.3bn, thanks to the mobile boom – sharply up on its estimate of 5.8 per cent in April.

Zenith is even more bullish about 2015, upgrading its growth forecast to 8.2 per cent, and pencilling in a further 5.9 per cent rise in 2016 to reach £16.4bn.

Advertising is seen as a bellwether of the economy because brands tend to increase ad spending in good times and cut quickly in bad times.

Zenith, whose clients include Aviva, O2 and Royal Bank of Scotland, reckons the UK ad market is growing faster than that of any other major developed economy. Its value should overtake Germany in 2016 in US dollar terms.

Jonathan Barnard, head of forecasting at Zenith, described Britain’s growth as “amazingly strong”.

Worldwide ad revenues should rise 5.4 per cent this year to $524bn (£309bn) as Europe returns to growth, after years of woe in the eurozone. The global forecast is marginally down on Zenith’s April estimate as a lift from the World Cup is offset by the crisis in Ukraine. The market should keep rising by more than 6 per cent in both 2015 and 2016.

Zenith says mobile is “the main driver ”, rising five times faster than “desktop” internet, because of smartphone adoption and the rise of 4G phone networks.

Moray MacLennan, worldwide chief executive of the ad agency M&C Saatchi, said UK advertising was benefiting from London’s role as a global centre for business, media and culture. “London’s right to claim the title ‘capital of the world’ has not been so strong for over 100 years,” he declared. “It has a confidence boarding on swagger, which is reflected in the advertising industry.”

Gerry Human, chief creative officer at Ogilvy & Mather London, said clients are taking a “more confident, less risk-averse approach to advertising”, particularly in fast-growing sectors such as digital entertainment and online.

Ogilvy is also seeing signs that “mainland Europe is recovering rapidly”, said Mr Human, whose agency does a significant amount of international work in London.

Jim Prior, chief executive of the WPP branding agencies The Partners and Lambie-Nairn, said: “Clients care increasingly less about geography these days and will happily engage with the best agency no matter where they happen to be located. London’s key strength is that it has more of the best talent in the world than any other city.”

Matthew Heath, chairman of marketing agency LIDA, said: “We continue to export great ideas and great work.”

Susan Sarandon described David Bowie as
peopleSusan Sarandon reveals more on her David Bowie romance
sportDidier Drogba returns to Chelsea on one-year deal
Arts and Entertainment
The Secret Cinema performance of Back to the Future has been cancelled again
Life and Style
Balmain's autumn/winter 2014 campaign, shot by Mario Sorrenti and featuring Binx Walton, Cara Delevingne, Jourdan Dunn, Ysaunny Brito, Issa Lish and Kayla Scott
fashionHow Olivier Rousteing is revitalising the house of Balmain
Arts and Entertainment
Christian Grey cradles Ana in the Fifty Shades of Grey film
filmFifty Shades of Grey trailer provokes moral outrage in US
BBC broadcaster and presenter Evan Davis, who will be taking over from Jeremy Paxman on Newsnight
peopleForget Paxman - what will Evan Davis be like on Newsnight?
Arsenal supporters gather for a recent ‘fan party’ in New Jersey
Life and Style
fashionCustomer complained about the visibly protruding ribs
The new dawn heralded by George Osborne has yet to rise
voicesJames Moore: As the Tories rub their hands together, the average voter will be asking why they're not getting a piece of the action
Dejan Lovren celebrates scoring for Southampton although the goal was later credited to Adam Lallana
newsComedy club forced to apologise as maggots eating a dead pigeon fall out of air-conditioning
Arts and Entertainment
Jo Brand says she's mellowed a lot
tvJo Brand says shows encourage people to laugh at the vulnerable
Life and Style
People may feel that they're procrastinating by watching TV in the evening
ebookA unique anthology of reporting and analysis of a crucial period of history
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 Risk Manager - Banking - London - £650

£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...

The benefits of being in Recruitment at SThree...

£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...

Test Analyst - UAT - Credit Risk

£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Evan Davis: The BBC’s wolf in sheep’s clothing to take over at Newsnight

The BBC’s wolf in sheep’s clothing

What will Evan Davis be like on Newsnight?
Finding the names for America’s shame: What happens to the immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert?

Finding the names for America’s shame

The immigrants crossing the US-Mexico border without documents who never make it past the Arizona desert
Inside a church for Born Again Christians: Speaking to God in a Manchester multiplex

Inside a church for Born Again Christians

As Britain's Anglican church struggles to establish its modern identity, one branch of Christianity is booming
Rihanna, Kim Kardashian and me: How Olivier Rousteing is revitalising the house of Balmain

Olivier Rousteing is revitalising the house of Balmain

Parisian couturier Pierre Balmain made his name dressing the mid-century jet set. Today, Olivier Rousteing – heir to the house Pierre built – is celebrating their 21st-century equivalents. The result? Nothing short of Balmania
Cancer, cardiac arrest, HIV and homelessness - and he's only 39

Incredible survival story of David Tovey

Tovey went from cooking for the Queen to rifling through bins for his supper. His is a startling story of endurance against the odds – and of a social safety net failing at every turn
Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little