UK advertising outlook improves after 'negligible' Brexit impact, WPP says

(ShareCast News) - The UK advertising industry outlook has been revised higher by marketing behemoth WPP's Group M business after what is seen as a "negligible" short-term impact from the Brexit vote.While upping its forecasts for the overall UK ad market, Group M trimmed its growth forecast for traditional media such as TV, radio, newspapers and magazines due to the ongoing marketing landgrab of technology giants Google and Facebook.WPP's chief executive Sir Martin Sorrell had lobbied to remain in the EU during the referendum campaign as he said Brexit would have a negative impact on the advertising business.But Adam Smith, futures director at Group M, said: "While the effect of the future European Union exit on the UK is unknown, the short-term impact was negligible. To our surprise, we are revising UK advertising growth up."Group M, a media investment group that is the world's largest buyer of media and a powerhouse in data analytics, upgraded its growth forecast to 7.2% this year from a previous 6.3% estimate, and to 7.2% for next year from 5.8%.However, it lowered its growth forecast for traditional media such as TV, radio, newspapers and magazines as technology giants Google and Facebook are increasingly claiming the majority of advertising revenue. The newspaper market is projected to fall by 12% this year and 9% in 2017.Group M slashed its forecast for overall traditional media spending to -2.6% this year from -1.1% and to -1.4% in 2017 from 0.5%.Shares in WPP were up 0.85% to 1,657p at 0941 GMT.