Global ad-buying agency Carat has predicted that advertising spend will return to growth in the UK in 2010 – making it one of the best performing media markets in the Western world.
But it will only be modest growth of around 1.4 per cent compared with declines of 11.7 per cent this year and 3.2 per cent last year, the agency claims.
It predicts that global ad spend will grow by one per cent in 2010. In the US, it says, spending will drop by 2.6 per cent and in Western Europe it will drop by 0.3 per cent.
Carat predicts that the fastest growing regions for ad spend next year will be the Asia and Pacific region (up 4.6 per cent) and China (up nine per cent).
The company said of the global figures: “National television and radio have been holding up better, due to their ability to drive strong reach and awareness.
“Newspapers continue to be hard hit by both the weak economy and consumers spending more time online. The real estate and automotive categories have cut back sharply and classified advertising is weak.
“Digital losses have been softened by some traditional media spend shifting over and the continued strength of search advertising. Online video has also experienced growth; however online display has been much more negotiable in terms of price.”
According to Carat, this year has been worse than expected for UK advertising spend.
It predicts that all UK media, apart from internet and cinema, will experience double digit ad spend decline this year.
The drops are: TV (-11.9 per cent), Radio (-12.6 per cent), outdoor (-12.2 per cent), newspapers and magazines have been hit the hardest (-20.3 per cent) and (-16.3 per cent) respectively.
Carat says: “Modest growth is forecast for 2010, with the World Cup expected to benefit the market, however a recovery is not forecast to be properly underway until 2011.”