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Group M upgrades UK ad growth forecast for 2010

MUMBAI: Sir Martin Sorrell‘s Group M has predicted that the UK advertising market spends will be up 7.7 per cent for the full year 2010, aided by a ?100m surge in national newspaper revenues.


In the company’s "This Year Next Year" annual UK report, the group elaborated a "broad-based and better than expected" ad recovery.
 
This report comes as an upward revision by the company, since it predicted “zero growth” last December. Also, in June it expected display advertising to be flat.


WPP‘s combined media buying operation Group M predicted in its latest report that display advertising, which accounts for about 85 per cent of total national newspaper ad expenditure, will go up by 9 per cent and the national newspaper advertising to grow by 6.6 per cent to ?1.4bn in 2010.
The report said that an “excellent” recovery has been made by the national newspapers in 2010 and puts the national newspaper advertising growth for 2011 at 2 per cent.
 
According to the report the UK TV market revenue will be up by nearly 14 per cent and 4 per cent in 2010 and 2011 respectively.


"TV‘s broad-based recovery has drawn in all categories except motors, which marked time on TV between January and September while diverting new money to just about every other medium," said Group M. "We revise our TV number up again to 14%, right at the top of even recent expectations."
 
In Group M’s view, the expected hikes in outdoor, internet and national newspaper will be about 13.9 per cent, 9.8 per cent and 6.6 per cent respectively.


Motivated by the opportunities presented by the latest smartphones and location-based services, the mobile sector is expected to be up 46.3 per cent and 45.5 per cent in 2010 and 2011 respectively.


Although Group M has sounded a note of prudence for 2011 arguing that in spite of the advertiser confidence "there is no reason for us to think 2011 [TV] budgets will be much up or down from here".


Group M also noted that "Our best hope for ad growth is the willingness and ability of UK plc to invest ahead of recovery."
 

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