GroupM sounds caution over traditional media's recovery

LONDON - UK ad spend on traditional media is set to plateau after a dismal 2006 as growth in online media slows, according to the latest forecast from WPP's GroupM.

Traditional media will see a 1% drop in revenue in 2007 and something close to 0% in 2008, as the likes of Channel 4 and News International evolve into multimedia "hubs", pushing their presence online.
But GroupM futures director Adam Smith warned: "Traditional media revenue has not quite stopped falling. We should beware of taking too much comfort in the data; absence of growth is never a good thing."
GroupM has forecast 2.6% growth in total UK ad spend in 2007 and 3.1% growth the following year, a conservative estimate compared to Carat's expected 4.1% growth in 2007 and 3.9% growth in 2008.
However, traditional media will continue to underperform the overall economy indefinitely unless it becomes more accountable, and productive, GroupM said.
The group believes internet revenue growth will slow from 47.5% in 2006 to 34.2% in 2007 and 30.4% in 2008 as broadband installation and hours online reach saturation point.  
TV revenue has bounced back from a 4% drop last year to an estimated 0.5% drop in 2007 and a 0.2% drop in 2008, as digitisation drives viewers to commercial TV. GroupM's forecast mirrors ZenithOptimedia's latest predictions that TV ad spend will even out across 2007, reflecting a 3.6% growth in the third quarter and a 1% decline in the fourth.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Gravity Road: new Bombay Sapphire Imagination Series 'exceeds' our 2013 Bafta win

Gravity Road: new Bombay Sapphire Imagination Series 'exceeds' our 2013 Bafta win

Bombay Sapphire has launched the second year of its 'Imagination Series' of five sponsored short films, after one from last year's series won a Bafta for Gravity Road in January.

Share
Outdoor Campaign of the Month: Just Eat
[Sponsored feature]
Share
Bauer launches daily football stats email The Equaliser

Bauer launches daily football stats email The Equaliser

Bauer Media has launched The Equaliser, a football-based daily email combining sports statistics and analysis, targeting desktop and mobile users.

Share

Get news by email