Growth in UK adspend holds steady

25 Apr 2017  |  Newsline Staff 
Growth in UK adspend holds steady

UK adspend grew 3.7% to reach £21.4bn in 2016, the seventh consecutive year of market growth, according to the latest Advertising Association/WARC Expenditure Report.

Growth in UK adspend held steady in Q3 after the June referendum, before reaching £5.8bn in Q4 2016, a rise of 3.9% year-on-year and the highest grossing quarter on record. In real terms, after accounting for inflation, UK adspend topped its pre-recession peak for the first time during both the final quarter and for 2016 as a whole. Forecasts for the next two years indicate continued growth of 2.5% in 2017 and 3.3% in 2018.

Digital formats continued to drive growth in 2016, with internet adspend up by 13.4% to £10.3bn, with mobile accounting for 99% of that growth. Mobile spend reached £3.9bn, with 86% of the current value of the mobile advertising market generated in just the past five years.

Digital accounted for 38% of the £1.1bn out of home advertising market in 2016, double the share digital recorded in 2012, while revenues from online ads were up for national newsbrands (+4.9% to £230m) for the fifth year running.

TV adspend, boosted by 12.6% growth in video-on-demand revenue, recorded a new high of £5.3bn in 2016, with TV’s share of overall spend holding steady at 25% over the last decade. Annual growth in adspend was also recorded for cinema (+8% to £257m) and radio (+5.4% to £646m) in 2016.

“The UK’s ad industry is experiencing the most seismic shift since WARC began monitoring in 1982," said James McDonald, senior data analyst at WARC.

"Last year exemplified this, as over 95% of the money entering the market came from digital formats. The trend will continue as ad tech improves and consumers spend more time with their internet-connected devices."

Latest

Growth, brand safety and new tech: radio has it all Manchester Arena attack: how the media responded E-sports: A chance for traditional TV to lure millennials Newsbrand daily unique browsers - April 15m Brits double mainstream media consumption pre-election

Related articles

Brexit vote has little impact on adspend growth forecasts National newsbrand ad revenue: context is key 2015: A stellar year for UK media owners
Leave a comment

Thank you for your comment - a copy has now been sent to the Newsline team who will review it shortly. Please note that the editor may edit your comment before publication.

CHART OF THE DAY

26 May 2017 

Data from Mediatel Connected
Find out more about the UK's most comprehensive aggregator of media data.

Arrange a demo
Advertisement

Newsline Bulletins

Receive weekly round-ups of the latest comment, opinion and media news, direct to your inbox.

More Info
Advertisement