Modest growth predicted for sluggish UK ad market

Europe as a whole is set for 4.4% growth, while the North American
market should grow 5.3%, according to the forecast.

When adjusted for inflation, the growth in the UK ad market is expected
to be just 1.4%.

While the World Cup stimulated extra ad spend in many countries, this
was not the case in the UK nor in host nation Germany.

The report suggests this is because a large chunk of the coverage was on
the commercial-free BBC, while ITV1, the other World Cup broadcaster,
faced trading challenges.

"ITV1 is suffering from a decline in viewing caused by the spread of
digital television and regulations that effectively require it to sell
its remaining viewers more cheaply as its audience declines," the report
says.

"It has not therefore been able to extract the premium prices it would
normally expect for World Cup viewers."

The report predicts a slight recovery of 2% year on year for the radio
sector, based on good performance from Emap and Chrysalis, and notes
that the outlook could improve if GCap has a strong second half.

Television revenues are expected to remain fairly static overall, but
the traditionally important categories of FMCG and motoring are tipped
to show double-digit declines. Cinema revenues are forecast to rise
slightly on the back of a strong season of blockbusters.

Meanwhile, UK press advertising will remain static year on year, with
marginal growth in display offset by declines in the classified sector
as that money shifts online.

Within the national press, finance remains the biggest category with a
2% rise in the first four months of this year.

Within magazines, cosmetics advertising remains dominant, although the
category fell 9% in the same period.