According to the latest AA/WARC Expenditure Report, UK advertising spending in the second quarter of 2011 decreased by 1.1% year-on-year (at current prices). In addition to the severe financial situation, challenging labor market and negative consumer sentiment, the decline was attributable in part to the growth of 11.9% in the second quarter of last year. This is the first time in more than a year that British advertising spending has fallen.

More specifically, TV advertising sales fell 2.2% in the second quarter of 2011, advertising in the publishing industry decreased by 7.7%, but radio advertising increased by 7.3%, online advertising increased by 6.4%, and direct mail advertising increased by 2%.

Looking ahead, the report predicts that the UK advertising market will rebound in the second half of 2011 and will increase to 1.3% and 1.7% in the third and fourth quarters, respectively. However, the forecast for annual growth rate has been reduced to 0.9%, and the forecast announced in June this year is that there will be an increase of 1.4% in the whole year. The report predicts that advertising revenue in 2012 will increase by 4.6%, while in June it had forecast a growth of 5.4%. Nevertheless, this is still a relatively high growth, to a large extent due to the 2012 London Olympics.

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