Adspend set to surge over the next 10 years

LONDON - Adspend in Britain could grow by as much as 52 per cent in real terms during the next decade fuelled by the internet, according to new forecasts produced for the Advertising Association.

AA... research
AA... research

It suggests the medium's share of spend will jump from the current six per cent to 14 per cent by 2020, with paid-for search advertising playing a key role.

The report, compiled for the AA by the World Advertising Research Center, suggests two possible future scenarios, which it calls a "high option" and a "low option".

The low option forecasts an adspend increase of 28 per cent over the next 10 years, while the high option predicts 52 per cent. If the current downturn period is included, adspend is forecast to grow by 32 per cent between 2007 and 2020 on the high option and by 11 per cent on the low one.

Over that period, the total share of total adspend accounted for by "other classified", which includes search advertising, is expected to increase from its current level of about 27 per cent to 38 per cent by 2020.

At the same time, display advertising's share is likely to drop from 66 per cent to 55 per cent as classified recruitment eases off.

Much of this will migrate to the internet, whose share of recruitment advertising is predicted to jump from the current 25 per cent to 58 per cent by 2020.

The report's authors base their predictions on the UK economy starting to recover in 2010 and recording annual growth rates of about 2.4 per cent from 2013 onwards.

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