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2013.06.19 Press Release



UK Recovers While European Neighbors Fall Behind

LONDON—Advertising spending in measured media in the United Kingdom is expected to show a 3.3 percent increase this year, ahead of the 2.1 percent advance recorded in the summer Olympics year 2012, according to a new report from GroupM.

The increase is similar to the modest pace of growth anticipated in North America, but behind ad investment in the Eurozone, where the report is predicting a 4 percent decline.

The report, “This Year, Next Year: U.K. Media and Marketing Forecasts” said measured ad spending in the U.K. is expected to reach a total of £13.5 billion ($20.5 billion) in 2013, up from £13.0 billion ($19.7 billion) in 2012.

The study, released today by GroupM Futures Director Adam Smith, also predicted that U.K. ad spending in 2014 would increase 3.5 percent to £13.9 billion ($21.1 billion).

“In a slow-growth world, the U.K. is one of the leading sources of new advertising demand,” Smith said.  “Wage growth and consumer spending remain depressed, but advertisers continue to invest into productive and diverse digital media.”

According to the report, digital spending will reach £5.9 billion ($8.9 billion) in 2013 and is expected to reach £6.5 billion ($9.9 billion) in 2014, indicating an 11 percent increase. Mobile media is expected to account for 15 percent of digital investment in 2013, up from 5 percent in 2011 and 10 percent in 2012, rising to an expected 18 percent in 2014. 

Print media remain under the most pressure, with advertising in newspapers and magazines expected to drop below £3 billion this year to £2.7 billion ($4.1 billion)—a decline of 8 percent from 2012. GroupM forecasts a further 10 percent drop in 2014 to £2.5 billion ($3.8 billion). Smith added: “U.K. print brands are active digital innovators, but we estimate this currently retrieves at best a quarter of the ad investment departing their physical formats.”

“This Year, Next Year” is part of GroupM's media and marketing forecasting series drawn from data supplied by holding company WPP's worldwide resources in advertising, public relations, market research, and specialist communications.  Copies of the full report are available to the media on request.

Media, £m, net 2012 2013f 2014f
TV 3,458 3,547 3,626
Radio 373 373 384
Newspapers (physical) 2,254 2,068 1,866
Magazines (physical) 736 672 598
Outdoor 776 761 783
Cinema 164 161 170
Internet 5,258 5,870 6,490
Media total £m 13,018 13,452 13,917
Media yoy % change 2012 2013f 2014f
TV -1.0 2.6 2.2
Radio 2.7 0.1 2.9
Newspapers (physical) -10.3 -8.2 -9.8
Magazines (physical) -12.0 -8.7 -11.0
Outdoor 9.5 -2.0 2.9
Cinema 12.0 -1.8 5.6
Internet 12.1 11.6 10.6
Media total 2.1 3.3 3.5

GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Maxus, MediaCom, MEC and Mindshare. Our primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of our clients, our shareholders and our people by operating as a parent and collaborator in performance-enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities. The agencies that comprise GroupM are all global operations in their own right with leading market positions. The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading, innovation, and new communication services, to bring competitive advantage to our clients and our companies.

John Wolfe
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