Group M has dramatically raised its forecast for the UK advertising market in 2010, from flat to 4.2 per cent year-on-year growth.
Group M, WPP’s combined media buying operation, expects a particular surge in TV advertising, revising its forecast from an overall decline for 2010 to a year-on-year increase of almost 12 per cent.
In December, Group M forecast that the UK would see total ad spend remain flat this year. Within this, TV advertising was predicted to be down 0.2 per cent year-on-year. However, this forecast has now been turned on its head, largely due to a massive increase in advertisers ploughing money back into TV as prices dropped to almost record low levels.
Group M is now forecasting that TV advertising will be up 11.6 per cent this year and a further three per cent next year. Cheap TV prices have meant the return of 'dormant' advertisers, the release of budgets held back during the downturn last year, and test or regional activity stepping up into national campaigns.