Growth of UK advertising expenditure halved from the second to the third quarter

The rate of growth of UK advertising expenditure halved from the second to the third quarter, according to data from the Advertising Association and Warc, while full-year forecasts have been revised downwards

A slowdown in the third quarter was expected after the boost to figures given by the FIFA World Cup earlier in the year. The latest data from the Advertising Association/Warc Expenditure Report – a definitive measure of advertising activity in the UK, being the only source that uses advertising expenditure gathered from across the entire media landscape – show that UK adspend grew 4.2% to reach £4,307m, or half the 8.5% figure registered in the second quarter.

At the same time, AA/Warc revised down their annual forecasts in the light of a more cautious outlook for UK GDP and renewed concerns over the eurozone. They are now predicting 2015 adspend growth of 5.7% (down from 6.5%) with full year 2014 forecasts adjusted down from 6.4% to 5.8%.

Despite the more conservative projections, 2014-2015 will be the strongest consecutive growth years for UK adspend this century. “Two years growth at twice the rate of the economy is hardly a recipe for pessimism but adspend isn’t immune to pressures on other sectors,” said Tim Lefroy, chief executive of the Advertising Association.