According to a report in the Sunday Times, the Centre for Economics and Business Research is forecasting that advertising spend for 2005 will rise by 7% to £23bn, despite predictions that the economy will generally slow down.
The figures follow those issued last week by the Advertising Association, which showed UK adspend continuing to rise over the last quarter, up by 5.7% to £3.7bn, as newspapers and television advertising received a boost with marketers returning to brand promotion. The AA said the figures were the strongest recorded since the end of 2002.
The findings, part of the CEBR's Business Services Briefing, is based on the historic impact of general elections on adspend. An election is expected this May, and Labour and the Conservatives have already started pre-election advertising.
The report also points to the impact that the growth in online retail sales is having on the high street, saying that the competition will force retailers to increase their advertising spend.
It also says that corporate advertising budgets are set to rise again, after cutbacks between 2000 and 2003.
Andrij Halushka, one of the authors of the report, told the Sunday Times: "The advertising business won't achieve the dizzy growth rates of the late 1990s in the near future, but this year will be the best since 1999."
Last year, the AA said that ad expenditure was set to grow by 4.4% next year, with the internet sector earmarked for a major boost, according to latest figures released by the association.
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