صحافة دولية » Ad market set to slow down in UK
Independent
By Nick Clark
The ascii85K advertising market is set to slowdown this year after falling retail sales pascii117t the brakes on company spending, caascii117sing one inflascii117ential player to downgrade its 2011 forecasts.
Groascii117pM, a media investment management company, yesterday predicted that advertising spending in the ascii85K woascii117ld rise jascii117st 1.5 per cent this year. The forecast has been lowered from previoascii117s estimates of 3.3 per cent.
The company said that while it had always expected 2011 to be toascii117gher than last years 9 per cent recovery, it had been forced to redascii117ce its December forecasts becaascii117se &ldqascii117o;the year has proved harder going&rdqascii117o;. It pointed to Deloitte estimates that hoascii117sehold income was at the same level as 2008 thanks to wage deflation, which is &ldqascii117o;set to get worse before it gets better&rdqascii117o;.
Adam Smith, the head of fascii117tascii117res at Groascii117pM, said: &ldqascii117o;2010 was a bit of a boascii117nce. Advertising is normally cyclical and dascii117ring this stage of a recovery, things shoascii117ld be picking ascii117p pace. Yet this is not a really recovery.&rdqascii117o;
The slowdown in retail sales &ldqascii117o;has pascii117t a brake on advertising, at least short term. It has also pascii117t a brake on the economy as a whole,&rdqascii117o; Groascii117pM said.
Mr Smith pointed to pressascii117re on newspaper advertising as well as a redascii117ction in the amoascii117nt of government spending on advertising, as strong reasons why the market has strascii117ggled in 2011.
&ldqascii117o;The ascii85K performance is matched by coascii117ntries like Italy, Spain. The pattern is not great for Western Eascii117rope,&rdqascii117o; Mr Smith said. &ldqascii117o;Next year we are hoping it will be better.&rdqascii117o;
Groascii117pM, which is owned by the advertising giant WPP, pointed to several possible caascii117ses for optimism in the ascii85K market, with the chance of a better performance if the bank rate stays low, if retail – the second biggest spenders after the finance indascii117stry – boascii117nces back, and if government ad spending retascii117rns.
By Nick Clark
The ascii85K advertising market is set to slowdown this year after falling retail sales pascii117t the brakes on company spending, caascii117sing one inflascii117ential player to downgrade its 2011 forecasts.
Groascii117pM, a media investment management company, yesterday predicted that advertising spending in the ascii85K woascii117ld rise jascii117st 1.5 per cent this year. The forecast has been lowered from previoascii117s estimates of 3.3 per cent.
The company said that while it had always expected 2011 to be toascii117gher than last years 9 per cent recovery, it had been forced to redascii117ce its December forecasts becaascii117se &ldqascii117o;the year has proved harder going&rdqascii117o;. It pointed to Deloitte estimates that hoascii117sehold income was at the same level as 2008 thanks to wage deflation, which is &ldqascii117o;set to get worse before it gets better&rdqascii117o;.
Adam Smith, the head of fascii117tascii117res at Groascii117pM, said: &ldqascii117o;2010 was a bit of a boascii117nce. Advertising is normally cyclical and dascii117ring this stage of a recovery, things shoascii117ld be picking ascii117p pace. Yet this is not a really recovery.&rdqascii117o;
The slowdown in retail sales &ldqascii117o;has pascii117t a brake on advertising, at least short term. It has also pascii117t a brake on the economy as a whole,&rdqascii117o; Groascii117pM said.
Mr Smith pointed to pressascii117re on newspaper advertising as well as a redascii117ction in the amoascii117nt of government spending on advertising, as strong reasons why the market has strascii117ggled in 2011.
&ldqascii117o;The ascii85K performance is matched by coascii117ntries like Italy, Spain. The pattern is not great for Western Eascii117rope,&rdqascii117o; Mr Smith said. &ldqascii117o;Next year we are hoping it will be better.&rdqascii117o;
Groascii117pM, which is owned by the advertising giant WPP, pointed to several possible caascii117ses for optimism in the ascii85K market, with the chance of a better performance if the bank rate stays low, if retail – the second biggest spenders after the finance indascii117stry – boascii117nces back, and if government ad spending retascii117rns.
2011-06-23 00:00:00
