Additional Information


Content

Will 2014 see strong growth in media?

The latest Group M adspend predictions suggest there may finally be light at the end of the tunnel. By Mark Banham.

Share this article

 

YES Lindsay Pattison, chief executive, Maxus UK

"Our discoverable (search, mobile/tablet, video on demand) media are in huge growth and delivered media (spots and spaces) are also doing well. Consumers are always on and clients are more focused on digital and new mobile assets."
 

YES Bruce Daisley, UK country manager, Twitter

"While the choices facing advertisers are plentiful now, no business is likely to have it easy next year. The real winners will be talented people – in a strengthening market, great people will be in renewed demand."
 

MAYBE Paul Bainsfair, director-general, IPA

"After years in the doldrums, it is deeply satisfying to see upbeat forecasts. However, UK media spend is critically linked to the overall economy, and it is far too early to talk about pulling out of difficulties and into sustainable growth."
 

YES Jim Freeman, group trading director, Telegraph Media Group

"2013 has been better than expected and I believe 2014 will see even more positive news. The nation is set to be buoyed as the big sporting events are back with the World Cup, Winter Olympics, Commonwealth Games and Ryder Cup."

If media spend is a barometer of what the wider economy can expect of its future prosperity, then there are strong indications that the fiscal tempest that the UK has been experiencing for half a decade may be giving over to a chink in the clouds.

The latest This Year, Next Year report from Group M, released last week, brought some rays of sunshine to an industry that has been in the darkness for too long.

It contained the confident prediction that UK advertising spend in 2013 would increase by 7 per cent to £13.9 billion – above the peak of £13.1 billion achieved in 2007, before the start of the economic downturn.

Broken down into sectors, Group M expects TV advertising to grow by 6.8 per cent year on year this year and outdoor to remain stable (with an increase of 0.1 per cent).

Online spend as a whole is forecast to leap by 17.2 per cent, with paid search up 20 per cent, online display 17.8 per cent, online classified 6.6 per cent and "other" 11.1 per cent.

Despite the heralding of a new advertising dawn, there were inevitable declines in some sectors.

Newspaper spend is predicted to fall 6.9 per cent this year, magazines by 8.2 per cent and cinema by 4.9 per cent. But these were spots of drizzle in what looks to be an optimistic forecast.

The report also predicted that adspend would increase by 6 per cent year on year in 2014, reaching another high of £14.8 billion, suggesting that the UK was "comfortably leading" the more mature advertising economies globally.

Helping to drive adspend next year will be the Fifa World Cup, the world’s biggest single sporting event, which takes place in Brazil – one of the most populous countries in the world and, arguably, the home of modern-day football.

Outdoor will see a 2 per cent increase in 2014 and cinema will grow 2.6 per cent. Meanwhile, both TV and online growth is expected to moderate slightly, to 5.1 per cent and 14.3 per cent respectively. The decline in newspapers and magazines, however, is forecast to worsen, falling by a respective 8.7 per cent and 10.8 per cent.

Taken as a whole, is the UK media industry set to experience strong growth in 2014?

This article was first published on campaignlive.co.uk

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed

FROM THE BLOGS

The Wall blogs

The Power of Colour External website

by Ardi Kolah, 17/04/2014

 

Forget about the BRICS External website

by Dan Foreman, 17/04/2014

 

Back to top ^