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World Cup gives ad spending a boost

Tue 21st Dec 2010 | Marketing & PR

A report compiled by the Advertising Association and the World Advertising Research Centre (WARC) has revealed UK advertising spend this year rose to its highest point since 2006, thanks to the World Cup.

The study forecasts UK ad spend for 2010 to be up 6.6% year on year – well ahead of the 5.4% predicted in September.

In the third quarter, total UK ad spend increased by 7.3% year on year, compared with predicted growth of 4.3.%.

Marketing around big national events such as the World Cup pushed advertising spend ahead of expectations this year, the report said.

The display advertising market was dominated by TV in the period from July to the end of September, with a 35.8% share. Overall, TV advertising was also the strongest performer in the period, posting growth of 15.8% – ahead of outdoor, with 12.4%, and online, with 11%.

However, growth in ad spend is expected to slow to 5% in the fourth quarter.

Total UK ad spend is expected to increase by just 2.3% in 2011, a slight increase on the 2% previously predicted, as January's VAT rise and public sector cuts create uncertainty among advertisers.

‘While UK ad spend has exceeded all expectations so far in 2010, it's wise to remain cautious when looking to next year,’ said Suzy Young, data editor at WARC.

‘We expect spend to increase just over 2% in 2011, but there are risks ahead – especially with government spending cuts and concerns about unemployment.’

 

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