The UK ad industry will report a faster than expected recovery in 2010, according to the latest Advertising Association (AA) and Warc Expenditure Report released today.  

Total advertising spend fell by 12 per cent in 2009, the biggest fall since measurement began in 1982. 

The data is now heading towards a return to modest growth in Q1 2010 – two quarters earlier than previously expected. AA/Warc has also upgraded its full-year 2010 forecast from 0.4 per cent growth to 2.3 per cent. The comprehensive AA/Warc Expenditure Report  encompasses a range of sources – including print, cinema, TV and digital. 

Tim Lefroy, chief executive at the Advertising Association, said: "It won’t surprise anybody that the industry has had a tough year. But, as confidence returns, it is clear forward-thinking organisations are stealing a march on their rivals by investing in advertising."  

AA/Warc forecasts suggest the UK advertising industry – which employs approximately 250,000 people and contributes more than £6.2 billion of value to the UK economy – will grow particularly strongly in Q2 2010 (+3.6% y/y). Television advertising, boosted by the World Cup, is predicted to perform strongly having returned to growth in Q4 2009 and advertising online will continue to grow.

Significant trends in advertising spend in 2009 included:

• Cinema and internet advertising bucked the trend for overall decline, with each increasing spend by six per cent
• Press advertising was hit hardest, down 23 per cent on the previous year
• Recruitment advertising fell 42 per cent year-on-year with regional newspapers particularly badly hit
• Business magazines saw display revenues drop by almost 30 per cent

Suzy Young, data editor at Warc, said: "There is now clear evidence that the industry has seen the worst of the recession. Structural challenges, particularly with print media, remain and the recovery is fragile but for advertisers, agencies and media alike, the prospects for 2010 look considerably brighter." 

The AA/Warc Expenditure Report, based on actual advertising spend, is a unique benchmark of the status of the UK advertising industry and has been running for 28 years.  The newly launched online-only format for the AA/Warc Expenditure Report is available at: www.warc.com/expenditurereport