UK television advertising spend recorded a small year-on-year decline in the second quarter of this year according to new figures.
TV revenues declined by 2.2% with the market as a whole in the UK falling by 1.1% overall during this period. However, radio advertising grew by 7.7% and online spend grew by 6.4%.
The overall fall is the first time the market has contracted since the last quarter of 2009, according to the latest Expenditure Report from the Advertising Association and World Advertising Research Centre (Warc).
According to the research, UK ad spend is now predicted to grow by just 0.9% in 2011, a downgrading from the previous forecast of 1.4%. All media except radio and direct mail advertising are expected to contract for this year according to both bodies.
The revised forecast reflects the current downturn in both consumer confidence and disposable income but expectations for 2012 are better with 4.6% growth predicted, helped by the London Olympics.
Tim Lefroy, chief executive at the Advertising Association, said: “Advertising is particularly prone to the bigger economic picture and while times remain tough, there are some grounds for optimism as we move towards 2012.”
Suzy Young, data editor at Warc, added: “While ad spend did contract year-on-year in the latest quarter, it’s worth remembering that quarter two of 2010 yielded a particularly strong result - +11.9% - making comparisons particularly unfavourable.”
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