UK ad spend returns to double digit growth

Some good news for all those in the creative world...

By Katherine Levy, campaignlive.co.uk, 12 October 2010, 09:15AM

The United Kingdom's advertising spend has recorded a double digit rise of 10.7% in the first half of 2010, according to Nielsen's latest Global AdView Pulse report.

Globally, ad spend has increased by 12.8% in the first six months of 2010 when compared to the same period in 2009, with a combined spend of $238 billion (£150 billion).

According to the report, ad spend increased in 35 of the 37 countries included, with double digit increases in 26 of those.

The report stated: "Only recession-battered markets of the UAE (-5.8%) and Ireland (-3.2%) recorded negative ad spend in the first half of this year."

The results indicate continued growth from the first quarter of 2010 when global ad spend rose to 12.5%.  

Michele Strazzera, deputy managing director of Nielsen Global AdView, said: "The latest Q2 numbers reflect similar growth trends that emerged in Q1 this year.

"According to rate-card figures, the global advertising industry continued to improve in Q2 with positive growth in all regions and across all media, led notably by the Asia Pacific market."

The report also observed that in Q2 there has been a global return to significant spend in discretionary ad categories such as automative and durables, which recorded increases of 20.7% and 17.3% respectively year on year.

Strazzera added: "Discretionary ad spend categories recorded the highest year-on-year increases, which is a leading indicator that advertisers and consumers are more confident to spend again."

FMCG brands continued to be the largest spenders in the first two quarters, with a 21.4% increase, ahead of automotive, financial services and durables.

Television, radio and newspaper ad spend continues to rebound with 15.8%, 11% and 9.5% growth respectively. Magazine advertising also increased by 3.7% for the first half of 2010.

Europe had an 8% ad spend increase for the first six months of 2010, led by double-digit increases in major regional markets including the UK (10.7%), Germany (9.6%), and France (11.6%).

In the first half of 2010, Latin America and the Middle East and Africa recorded the largest increases year-on-year, recording 44.5% and 23.8% respectively.

This article was first published on campaignlive.co.uk