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The Brexit economy is taking a huge toll on the Britain’s advertising scene; reports and forecasts are flooding as exiting the European Union effect are starting to bite in. The expected growth in overall ad spending in the UK was down and other supplementary figures as well. Theresa May also pushes a hard Brexit or else her plans may stumble on a sinkhole.

The world’s largest media investment group has recently announced its distaste on the Brexit’s effect on ads in the UK; they changed their former prediction on how much ad spending can grow for the current year. Group M had set their forecast to 4.1% increase at 18.6 billion pounds or $23.5 billion ad spending for this year; the latter was at a flat 7%.

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Group M Information

Apart from the overall ad spending forecasts, the conglomerate is also expecting a slight decrease by 2.7% in TV spending for this year. According to the group, the sudden decrease on their forecast is brought up by the impending turbulence and the unpredictable impact the Brexit economy can have on major businesses.

Recent news also revealed that UK-based broadcasters such as ITV Plc and Sky Plc revealed that they were having a troublesome time recruiting and attracting advertisers as of late. One impending dilemma for broadcasters is the lack of younger audience, or the dwindling figures of young audiences because of the advent of portable devices and mobile devices.

The company ITV saw a dipped on its share by 0.6% at 177.5 in earlier trading, while Sky’s shares dipped by 0.5% to 959.5 at the same time.

According to Group M’s Future Director Adam Smith on his recent statement, “We had previously discounted Brexit as a drag on the economy, but the recent U.K. general election has magnified rather than reduced uncertainty,” and “This is not helpful for growth when consumers and public finances are already under stress, and corporate investment subdued.”

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Zenith’s Statement on Ad Spending Crisis

Zenith, a publicist media company, also lowered its expectations for this year’s ad spending growth. The company also feared that the inflation and political turbulence in the UK can have a potential denting blow on advertisers and broadcasts outlets as well; the current prediction of Zenith is at 2.2% increase in UK ad spending for this year, a big dip from last year’s expectations that was around 4.5%.

The UK has been the biggest growth leader for the Western and Central European market ever since 2011 until last year. Their exponential growth was tallied to be at 7.3% a year according to the calculations done by Zenith; so there will be a big chance that a big turnover can occur during the period. It may surprise a lot of analysts and speculators but it is a possibility that has a big percentage of happening given the previous circumstances.

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