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NEWS25 April 2017

Ad expenditure hits £21.4bn in 2016

Brexit Media News Trends UK

UK – Ad spend in the UK grew 3.7% in 2016 to reach £21.4bn, according to the Advertising Association/Warc Expenditure Report.

This was the seventh consecutive year of market growth with digital formats fairing the best. Internet ad spend was up 13.4% to £10.3bn – mobile accounted for 99% of the 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 past decade.

Stephen Woodford, chief executive at the Advertising Association said: “Advertising has proved resilient to uncertainty and behind these numbers is a cutting edge, digital business in which Britain is a world-beater. As we work towards Brexit, we’re urging government to support UK advertising and do more to unlock its potential to grow UK plc.”  

 

 

 

 

Adspend 2016 (£m)

2016 v 2015

Forecast 2017

Forecast 2018

% change

% change

% change

Internet

10,304

13.4%

8.5%

7.6%

of which mobile

3,866

45.4%

30.4%

20.8%

TV

5,277

0.2%

-0.5%

3.0%

of which spot advertising

4,730

-0.5%

-1.4%

2.4%

of which broadcaster VoD

197

12.6%

13.7%

11.0%

Direct Mail

1,713

-10.4%

-7.5%

-6.0%

Out of Home

1,106

4.5%

3.4%

2.3%

National newsbrands

1,101

-10.0%

-7.4%

-7.2%

of which digital

230

4.9%

1.9%

1.4%

Regional newsbrands

1,021

-13.2%

-8.6%

-8.3%

of which digital

193

-3.4%

0.2%

1.0%

Magazine brands

877

-6.8%

-5.1%

-4.6%

of which digital

282

0.2%

3.3%

3.7%

Radio

646

5.4%

3.3%

2.6%

of which digital

28

35.0%

21.3%

18.7%

Cinema

257

8.0%

5.3%

3.6%

TOTAL UK ADSPEND

21,372

3.7%

2.5%

3.3%


 Source: AA/Warc Expenditure Report, April 2017

 



@RESEARCH LIVE

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