UK advertising delivers 20th consecutive quarter of growth and strongest total H1 adspend since 2014
- Written by ACN Newswire
This record investment, highlighted in Advertising Association/WARC Expenditure Report data, published today, means full-year outlooks for 2018 and 2019 have been upgraded to +6.3% and +4.9% respectively. This would lead to a projected adspend total of over GBP 23.5bn for 2018.
Overall market growth is being driven by increased spend on online advertising. Internet advertising - inclusive of online revenues for newsbrands, magazine brands, broadcaster video-on-demand and radio station websites - continues to grow at a rapid rate and consequently full-year projection figures have been upgraded by three and a half points to 13.3% growth this year. This would result in over GBP 13bn being spent on online advertising in the UK this year.
Data show that mobile accounted for over half of search spend for the first time in the second quarter. Further, display formats are also growing strongly - online video attracted half a billion pounds during the three months to end-June.
The TV market grew ahead of expectations in the second quarter of 2018, with total spend rising 1.9% to GBP 1.2bn. Spot advertising - 89% of the total - rose for the third consecutive quarter, and the 1.4% growth rate was ahead of forecast.
The figures come as the UK Government seeks to come to an agreement with EU on Brexit and are based on a positive outcome to negotiations, as is sought by both sides.
Minister for Digital and the Creative Industries Margot James said:
"It's fantastic to see our world leading advertising sector continuing to flourish. The industry makes a huge contribution to the UK economy, and its international reputation for creative excellence is playing a vital role in helping to bang the drum for Britain abroad."
Stephen Woodford, Chief Executive at the Advertising Association commented: "Spend on advertising is showing real strength and resilience especially at a time of some uncertainty for UK business. We know advertising has a positive effect on the economy, with GBP 1 spent generating GBP 6 for UK GDP, so it is encouraging to see the strongest Q2 and H1 results since 2014.
"While we welcome these figures, we are also conscious that our upgraded predictions for 2018 and 2019 depend on getting the right deal from Brexit negotiations and clarity on what the future will look like.
"We must also ensure that the unique features that have made the UK the global hub for our industry, such as access to the best and brightest creative talent from across the world, are prioritised as we leave the EU."
James McDonald, Data Editor at WARC said: "Growth in online advertising spend continues to exceed our expectations, resulting in the fifth upgrade to our forecasts in as many quarters. Barring any major shock to the system, this trend should continue to play out over the years ahead, lifting total market value in tow."
About WARC
- Your global authority on advertising and media effectiveness
warc.com is an online service offering advertising best practice, evidence, insights and data from the world's leading brands. WARC helps clients grow their businesses by using proven approaches to maximise advertising effectiveness. WARC's clients include the world's largest advertising and media agencies, research companies, advertisers, market analysts and academics.
WARC runs two global and two regional case study competitions: WARC Awards, WARC Media Awards, WARC Prize for Asian Strategy and WARC Prize for MENA Strategy.
WARC publishes three global rankings of advertising excellence: Gunn 100 (creativity), WARC 100 (effectiveness), Gunn Media 100 (media innovation) and publishes leading journals including Admap, Market Leader, the Journal of Advertising Research and the International Journal of the Market Research Society. In addition to its own content, WARC features advertising case studies and best practices from more than 50 respected industry sources, including ARF, Effies, Cannes Lions, ESOMAR and IPA.
Founded in 1985, WARC has offices in the UK, U.S. and Singapore. In June 2018 WARC was acquired by Ascential plc, the global specialist information company.
About Advertising Association
We are the only organisation that brings together agencies, brands and media to combine strengths and seek consensus on the issues that affect them. Through wide-reaching engagement and evidence-based debate we aim to build trust and maximise the value of advertising for all concerned.
Contact:
Amanda Benfell PR Manager +44 20 7467 8125 [email protected][1] Source: WARC[2] / Advertising Association[3] Topic: Press release summarySectors: Media, Advertising[4][5] http://www.acnnewswire.com From the Asia Corporate News Network
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References
- ^ [email protected] (www.acnnewswire.com)
- ^ WARC (www.warc.com)
- ^ Advertising Association (adassoc.org.uk)
- ^ Media (www.acnnewswire.com)
- ^ Advertising (www.acnnewswire.com)
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