This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here

NEWS27 July 2017

2017 starts in growth for UK ad spend

Media News Retail Trends UK

UK – UK ad spend grew 1.3% year-on-year in Q1 2017, the 15th consecutive quarter of growth, although the slowest in four years, to reach £5.3 billion according to figures from the Advertising Association and Warc.

The growth was achieved despite TV ad spend dropping -6.2%, its first fall since 2009, although it is forecast to grow again in 2018 by 2.5%. Broadcaster video-on-demand did increase 7.2%.

Digital advertising channels that performed well included national newsbrands up 25.4% (accounting for just over a quarter of newsbrands ad revenue), radio increased 8.1% and out of home rose 27.6%. Cinema grew 27.6%.

Internet ad spend increased 10.1% in Q1, mainly driven by mobile which increased 36.2%.

Stephen Woodford, chief executive at the AA said: “As business sentiment suffers, it’s no surprise to see ad-spend come under pressure – but the market overall remains resilient. Beyond these numbers, our sector is a huge source of inward investment and exports and should be a priority for government as we focus on business beyond Brexit.”

James McDonald, senior data analyst at Warc added: “The latest data shows that large retailers – particularly supermarkets – and major food brands reined in their TV spending by 25% during the first three months of 2017, instead committing to cutting prices on the shelves as household expenditure wanes.”

The full year outlook for 2017 has been downgraded by -0.5pp to 2% growth, but is forecast to recover by 2018 at 2.6% growth, driven by the men’s football World Cup and a likely improvement in certainty around the terms of Brexit.