Olympics to Boost UK Ad Spend

A new study by Warc, the marketing research company, forecasts that UK ad spend will rise by over four per cent this year, driven in part by the Olympics. The report, the International Ad Forecast, actually suggests that spend in most major advertising markets will rise in 2012, overall, they forecast the market to grow by 4.5 per cent (though this falls to a real rise of 1.9 per cent when inflation is taken into account).

The greatest growth will be seen in the fast moving, less recession-hit economies of India, Russia and China, all of whom are forecast to grow by at least 11.5 per cent, with Brazil not far behind at 8.5 per cent (at current prices).
 
By contrast, countries such as France and Germany in recessionary Europe will see single digit growth of around one per cent, with Italy actually forecast to see a reduction in spend of 0.8 per cent. This is the only country to see a contraction in spend though, which, given the economic climate, should be at least a little encouraging.

Over in the US, the growing media juggernauts that are the presidential election campaigns were forecast to help boost US ad spend by 4.1 per cent in 2012. Canada is forecast to hit a little higher, at 5.1 per cent, whilst Japan will see just 2.5 per cent growth. A different study suggests that US online advertising spend will overtake print for the first time this year, a major milestone that we'll probably see much trumpeted if it happens.

Worldwide FMCG giant Proctor and Gamble has already said that it is now looking to rapidly move more of the its $10 billion a year ad budget into digital marketing, having somewhat belatedly realised the cost efficiencies that internet marketing can bring it; expect to see other global brands doing the same.