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UK advertising market is still under pressure

Despite the fact that it appears that the UK economy is consolidating at worst and possibly showing signs of recovery, Carat, a subsidiary of media giant Aegis, believes that we will not see a full recovery in the advertising industry until 2011 at the earliest. However, media moguls are starting to see evidence that the rate of reduction in advertising spending is slowing which is giving many of them hope for the future in these most difficult of times.

When you consider that many companies are still looking to maintain high levels of cash flow, where possible, within their operations, it is no surprise to see that many UK advertising budgets are under pressure at the moment. However, once the business arena consolidates and then begins to move ahead, slowly but surely we will see advertising spending increase across the UK, but this is unlikely to happen until consumers have more money in their pockets and more free cash to spend.

The advertising industry has historically been one of the last to benefit from any eventual recovery in the economy and when you consider the depth of the recent recession, this particular recovery period could be fairly prolonged.

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