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.”

Start your day with The Independent, sign up for daily news emails
ebooksNow available in paperback
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

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas