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".
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. The AA and Warc said the UK ad market climbed 2.3 per cent to £17.17bn in 2012, partly down to the Olympics and the Queen's Diamond Jubilee. Last year's overall performance was the best since 2007 when expenditure peaked at £17.36bn.
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