UK adspend to top £20bn for the first time ever in 2015
New UK advertising forecasts, released today, are predicting growth of 5.5% in 2014 and 6.5% in 2015, taking UK adspend past £20 billion for the first time.
The forecasts, taken from the latest Advertising Association/Warc Expenditure Report, reflect reports on the improving buoyancy in the UK economy from both the IMF and the recent IPA Bellwether report.
UK adspend reached £17,877 million in 2013, up 3.9% on the previous year with mobile advertising (+95%), broadcast video on demand (+21%) and digital national newsbrands (+19.5%) all experiencing strong growth.
The Advertising Association/Warc Expenditure Report is deemed by many as the definitive measure of advertising activity in the UK. It is the only source that uses advertising expenditure gathered from across the entire media landscape, rather than relying solely on estimated or modelled data.
The forecasts also reveal that display advertising enjoyed a turnaround in the second half of 2013, experiencing a 5% growth - its best performance since the recovery in 2010.
Spend on recruitment advertising also enjoyed a better year, rising by almost 4% in Q4 after losing over 60% of its value since 2007. The report's authors suggest that as the economy and job market improves, investment in recruitment advertising is expected to grow more than 1% this year and over 3% in 2015.
The report also forecasts mobile to account for a quarter of search spend by the end of the year, rising to a third by 2015. The authors say desktop search will be "relatively flat" over the same period as a result.
"Another set of positive indicators to support the growth story - every pound spent on advertising returns six to GDP," said Tim Lefroy, chief executive at the Advertising Association.
"The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice."
Exclusively on Newsline this week, Warc will share in-depth coverage based on the latest forecasts - covering national and regional newsbrands, print to digital trends, the rise of mobile, TV and the long term picture for the sector.
MediaTel subscribers can also now gain access to adspend and revenue figures by medium and aggregated forecast trends by medium from AA/WARC, Carat, eMarketer, GroupM and ZenithOptimedia in the new Media Landscape tool.
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