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UK Adspend Growth at Three-Year High

Advertising spend in the UK grew at its fastest rate for three years in the second quarter of this year.
Figures released by the Advertising Association/Warc show adspend increased by 8.5 per cent year on year to reach £4.5 billion for the second quarter of 2014.
Across the first half of 2014, total UK adspend rose by 6.3 per cent year on year. This has led to a 0.4 per cent upward revision for the full year forecast to 6.4 per cent for 2014, but a 0.2 per cent downward revision to 6.5 per cent for 2015.
OOH spend is expected to rise by 3.4 per cent by the end of the year, while 2015 is predicted to increase by 5.5 per cent.

Tim Lefroy, chief executive at the AA, said: “Growth at twice the rate of UK GDP is quite a headline, but the real story is of digital and creative leadership in e-commerce.
“As the Eurozone wobbles, it’s a reminder that our consumer economy is central to the UK’s economic narrative.”
Via: Campaign

IPA Bellwether

Marketing budgets have increased for the seventh consecutive quarter, according to the Q2 2014 IPA Bellwether Report.
A total 15.2 per cent of companies registered an increase in their marketing budgets during Q2, while the end-of-year financial results for 2013 to 2014 revealed that 20 per cent of companies had increased their budgets, resulting in the IPA deeming it “the longest period of continuous growth in the survey’s 14-year history”.
As the economy itself is set to expand, the Bellwether report predicts a real-term increase in ad spend of 6.1 per cent for the year as a whole.
Chris Williamson, chief economist at Markit and author of the Bellwether Report, said: “Marketing spend is surging higher as companies remain upbeat about the future. The extent to which business confidence has shown continual improvements over the past year is remarkable, generating a major inflow of investment in marketing.
“Companies reported that spending on marketing and advertising activities showed the strongest rise for a decade last year. This year’s budgeted spend, which was already set higher than last year, has been revised up again in the second quarter, setting the scene for a bumper year.
“The survey also adds to a growing body of data which points to the UK economy sustaining strong growth as we move into the second half of the year.”
Internet marketing saw big increases in investment, with budgets up 14.7 per cent, while search budgets also surged a further 12.9 per cent. However, market research budgets dropped 2.4 per cent.
Bellwether further predicts a slower increase in ad spend of 3.8 per cent in 2015.
Full IPA Bellwether report
Via: The Drum