Group M slashes UK ad forecasts

Media agency Group M has slashed its UK advertising forecasts for the television industry. The company has cut its forecast for advertising growth to 1%, compared to 4% that it predicted in December. Group M, which is owned by Martin Sorrell’s WPP, has also slashed its forecast for total UK advertising from 3.6% to 1.5%.

“Real household disposable income is presently the same as it was in 2008 thanks to wage deflation and the tax / benefit squeeze. And it is going to get worse before it gets better. 2011’s UK retail sales slowdown has put a brake on advertising, at least short-term. We always expected 2011 would be fundamentally tougher, but have had to reduce our previous forecast,” said Group M director Adam Smith.