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UK ad spend reaches pre-recession levels

Advertising expenditure in the UK reached £17 billion in 2012, up 2.3% on 2011 according to figures from the latest AA/Warc Expenditure Report, and representing the first time advertising spend exceeded £17 billion since 2007 - before the recession began.

The report's forecasts for the next eight quarters show ad spend continuing to grow, reaching a 5% growth rate in 2014, well ahead of inflation. Growth of 2.7% is expected in 2013.

Among the key findings of the report:

Analysis of annual ad spend data over the past 30 years shows that there is a link between annual changes in GDP and annual changes in ad spend (after allowing for inflation, and excluding recruitment ad spend). Over this period, GDP changes account for about two thirds of the change in ad spend. According to Tim Lefroy, chief executive for the Advertising Association, "These figures are good news for our industries but there is a bigger picture. Advertising does not just track GDP - it drives it. The return to pre-recession levels of spending will have an impact not just on ad-land but the economy at large."

The Advertising Association/Warc quarterly Expenditure Report provides a guide to advertising expenditure in the UK, and is impartial and independent of any media channel or agency. The survey was launched in 1981 and has since produced data on a quarterly basis.


Sources: Warc; Advertising Association / The Marketing Factbook.
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Have you seen The Marketing Factbook?

The Marketing Factbook will help you up your marketing game, walking you through the techniques, metrics, reporting, analysis, marketing models, technologies, tools and innovations you need for a hgih-profit, high-rentention marketing strategy.

This comprehensive marketing guide has 400+ packed pages of marketing strategy, trends, best practices, do's and don'ts, practical know-how, facts and figures, and tons of ideas to boost sales revenue, market share, ROI, and profits. It's the report no marketer can afford to be without.

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