AA/Warc: Sport and recruitment boost Q2 adspend
Strong performances for TV and radio in the first quarter of 2014 and the improving economic outlook have led the Advertising Association and Warc to revise their forecasts upwards for the UK's ad market, with the latest expenditure report forecasting 6% growth rate in 2014 and 6.7% in 2015.
Total UK advertising expenditure increased by 5% in Q1 2014 for each £4,441 million, ahead of the 4.5% growth predicted in April.
Spot TV advertising saw a revenue increase of 6% in Q1 to reach £1,100 million, which the report says should accelerate to 10.5% growth in Q2 as TV sees a significant boost from the World Cup.
The rate of increase is expected to ease in the third quarter, reflecting the impact of budgets brought forward specifically for the tournament.
Overall TV advertising is expected to deliver a 6.5% increase this year compared with 2013.
Radio also posted a positive start to the year, rising by 5.7% year on year in Q1. Q2 is expected to see growth of 7.6% before slowing for the rest of the year. AA/Warc forecasts radio to record an annual increase of 4.4% in 2014, the sector's best performance since 2003.
The results ensured that total display saw a strong start to 2014, increasing by 3.1%. Across the year an increase of 4.7% is forecast, followed by a further increase of 5.8%.
After recording 21 quarters of decline out of the last 25, spend on recruitment is finally showing signs of recovery. Adspend grew in both the final quarter of 2013 (3.7%) and the first quarter of 2014 (2.6%), with growth expected to continue through to 2015. Total recruitment spend is predicted to reach £521 million this year.
"The latest set of data shows the importance of global events such as the World Cup to advertising spend in the UK," said Karen Fraser, director of strategy at the Advertising Association.
"Following a positive start to the year in Q1, Q2 is set to be a strong quarter for the sector, buoyed by the tournament."
MediaTel subscribers can access aggregated forecast trends by medium from AA/Warc, Carat, eMarketer, GroupM and ZenithOptimedia in the new Media Landscape tool.
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