Ad Spend to Grow in 2011

The Advertising Association and Warc have raised their ad spend forecast for 2011 from 2% to 2.3% but cautioned the outlook “remains clouded by economic factors”.AA and Warc have revised their estimate of 2010 ad spend upwards from the 5.4% predicted in September to 6.6%. This would make 2010 the strongest year for ad spend growth since 2004.

The scheduled VAT increase in January from 15% to 17.5% is expected to have led advertisers to bring spend forward into the fourth quarter of this year.

Suzy Young, data editor at Warc, said: “While UK ad spend has exceeded all expectations so far in 2010, it’s wise to remain cautious when looking to next year.

“We expect spend to increase by just over 2% in 2011, but there are risks ahead, especially with government spending cuts and concerns about unemployment.”