According to eMarketer, in February, Strategy Analytics forecast that total ad spending in the UK will increase 4.2%, compared to 3.7% in Europe overall and 2.7% in the US. The boost from the Olympics will push the UK closer to the worldwide average of 4.9%, which is buoyed by fast growth in emerging markets like China, Brazil and India.For comparison, eMarketer estimates UK total ad spending to increase 4.8%, up from 3% in 2011, showing a convergence in the projections.
“This summer’s Olympics are already generating extra interest and investment in UK advertising, as brands ramp up activity focused on the Games and the audiences they will attract,” said Karin von Abrams, eMarketer senior analyst. “The most recent Bellwether study from the Institute of Practitioners in Advertising (IPA) also points to an uplift in ad spending this year, despite a generally gloomy economic picture. More UK marketers increased their ad spending in Q1 2012 than cut back—the third successive quarter this has happened. Online spending in particular rose by 7.8% during the quarter, according to the IPA.”
Strategy Analytics estimates that online ad spending will be a bright spot across the board, rising 10.6% in the UK, 11.7% throughout Europe, 12.8% worldwide and 6.7% in the US. Again, eMarketer’s own forecast concurs, estimating UK online ad spending will jump 12% and reach £5.09 billion ($7.84 billion) in 2012, before settling back down to 10% growth in 2013.